,-> ? Moving to another question will save this response. Question t of 14 Quest

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,-> ? Moving to another question will save this response. Question t of 14 Question1 5 points Saved According to the Inverse Elasticity Rule (or Lerner Index) it is right to say monopoly will choose to operate only in regions in which the market demand curve is elastic monopoly never operates in low-income markets A monopoly prefers to engage in competition with 3 frms rather than 2 Firms markup is directly proportional to the income-elasticity of demand Moving to another question will save this response Question 1 of 14.22 S2018/7/27 15:27

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Option 1

This is because if it operates in inelastic region, it has an incentive to raise price to increase revenue which continues till the entire inelastic region is eliminated and the monopolist is now reached in the elastic region.

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