Question:

A nondiscriminating monopolist:?

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will never produce in the output range where marginal revenue is positive.

will never produce in the output range where demand is inelastic.

will never produce in the output range where demand is elastic.

may produce where demand is either elastic or inelastic, depending on the level of production costs.

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  1. will never produce in the output range where demand is elastic

    Where demand is inelastic, marginal revenue is positive; where it is elastic, MR is negative.  A monopolist determines quantity at the point where marginal cost equals marginal revenue, and since marginal cost will always be positive, he will only produce where demand is inelastic.

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