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The monopolist should NEVER produce in the Question 10 options: range of output for which there is a price elasticity exceeding one. range of output for which the price elasticity of demand is infinity. elastic segment of its demand curve because it can increase total revenue and reduce total cost by lowering price. inelastic segment of its demand curve because further lowering of the price reduces total revenue.

Respuesta :

Answer:

inelastic segment of its demand curve because further lowering of the price reduces total revenue

Explanation:

Monopolistic competition is a state of the industry that deals with several firms that are closely linked to each other but offer distinct goods. In fact, this market provides free entry and exit

Therefore the monopolist never produced inelastic section of the demand curve as the price should be decline that results into fall in the total revenue

Hence, the last option is correct

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