Please explain the answers
1. A pure monopolist should never produce in the:
A. elastic segment of its demand curve because it can increase total revenue and reduce total cost by lowering price.
B. inelastic segment of its demand curve because it can increase total revenue and reduce total cost by increasing price.
C. inelastic segment of its demand curve because it can always increase total revenue by more than it increases total cost by reducing price.
D. segment of its demand curve where the price elasticity coefficient is greater than one.
2. Many people believe that monopolies charge any price they want to without affecting sales. Instead, the output level for a profit-maximizing monopoly is determined by:
A. Marginal cost = demand
B. Marginal revenue = demand
C. Average total cost = demand
D. Marginal cost = marginal revenue
3. Allocative inefficiency due to unregulated monopoly is characterized by the condition:
A. P = MC
B. P = MR
C. P > MC
D. P > AVC