Author Question: Say that a monopolist is currently operating on the inelastic region of its demand curve. To ... (Read 55 times)

Mimi · **on:** Jun 30, 2018

Say that a monopolist is currently operating on the inelastic region of its demand curve. To maximize its profits, it should:
a. raise its prices.
b. lower its prices.
c. maintain its current price.
d. either raise or lower its prices, depending on how high its marginal cost curve is.

Question 2

In order to protect key industries, some countries impose taxes on their exports instead of imports, mainly because it is easier to collect taxes from the export industry.
a. True
b. False
Indicate whether the statement is true or false