Question:

Explain me why a monopolist?

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will always produce a quantity at which the demand curve is elastic ?

Thanks a lot

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  1. because if they produce a quantity that is inelastic to the demad curve they wouldn't be considered a monopolist really anymore....Monopolists control their market, for instance say microsoft was the only computer company in the world no other computer company existed, and microsoft produced enough computers so that the supply met the demand and the price of computers were at where they are at now....that would make absolutely no sense...and i will tell you why because for one they would be losing a massive amount of money...and they have absolutley no competition so they can do whatever the h**l they want to do...thats saying if microsoft was the only computer company in the world...now monolpolists don't last long because once people see that there are a market for something lets just use the microsoft example they would want to go into the computer business and make computers because then they would be taking a slice of the pie from microsoft. and then more would come into play, and more and more until either it wasn't profitable for another computer company to start up business or it didn't make sense for that company to start a computer business...


  2. they won't.  Imagine that the demand curve was perfectly inelastic.  It would be fallacious to assume that a monopolist would not produce at all.  Proof enough?

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