Business, 18.07.2019 02:30 eayoungin

5. problems and applications q5 consider the relationship between monopoly pricing and the price elasticity of demand. if demand is inelastic, total revenue would increase when a monopolist its price. as a result, total cost would . therefore, a monopolist will produce a quantity at which the demand curve is inelastic. use the purple segment (diamond symbols) to indicate the portion of the demand curve that is inelastic. (hint: the answer is related to the marginal-revenue (mr) curve.) then use the black point (plus symbol) to show the quantity and price that maximizes total revenue (tr). inelastic demand max tr 0 1 2 3 4 5 6 7 8 9 10 10 9 8 7 6 5 4 3 2 1 0 -1 -2 -3 -4 -5 price quantity demand marginal revenue

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