Consider the relationship between monopoly pricing and price elasticity of demand.a. Explain why a monopolist will never produce a quantity at which the demand curve isinelastic. (Hint: If demand is inelastic and the firm raises its price, what happens to totalrevenue and total costs?)b. Draw a diagram for a monopolist, precisely labeling the portion of the demand curve thatis inelastic. (Hint: The answer is related to the marginal- revenue curve.)c. On your diagram, show the quantity and price that maximize total revenue.

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