The demand curve for a monopolist is inelastic. Why?

Demand    P=70-Q MR            MR=70-2Q MC            MC=10+Q What is this monopolist profit maximizing rule? How much will he produce? What price does he charge?

Refer to the above data. The monopolist will realize a

How, if at all, will a monopolist respond to a rise in the price of an input? (provide explanation with graphs)

The supply curve for a monopolist is always positively sloped.  

Is a monopoly always undesirable? With a diagram.

Is a monopoly always undesirable? Support your answer with a diagram.

According to economists, the process of optimal decision making by consumers typically yields total benefits well above the amount paid for the goods. These market-created benefits are referred to as ▼, and using the graph to the right, are represented by area Suppose now that the market price falls. According to the graph, the excess of total benefits over the total amount spent by consumers will ▼ decrease increase not change PM B Quantity (Q) Q

How does a monopolist in a market impact Consumer Choice and Pricing Strategies in the real world. Provide relevant examples.

Suppose a monopolist has a demand curve equal to the following: P = 1000 - 2Q, and MC = 200. What is the monopolist's price?