O Zero economic profits O Zero accounting profits O We can say nothing about thi

Question

O Zero economic profits O Zero accounting profits O We can say nothing about this firm's profit or loss situation QUESTION 24 2 pointss Which of the following statements is correct? O The pure monopolist will maximize profit by producing at that point on the demand curve where elasticity is zero. O In seeking the profit-maximizing output, the pure monopolist underalocates resources to its production. O The pure monopolist maximizes profits by producing that output at which the differential between price and average cost is the greatest. O Purely monopolistic sellers earn only normal profits in the long run. Click Save and Submit to save and submit. Click Save All Answers to save all answers. Save All Answers Save a here to search

Explanation / Answer

In seeking the profit-maximizing output the pure monopolist underallocates resources to its production.

the above is the answer

because he will produce lower than optimal output

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