An Economics question!!

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1

<p>It is said that a monopoly will never operate on the inelastic portion of its demand curve, and the reason is "MR is negative, meaning that total revenue would increase by producing less."
But isn't it good for the company? It can produce few products but make more money simply by raising the price? </p>

<p>Thanks.</p>

2

<p>If total revenue would increase by producing less, then total revenue is at its highest when production is zero.</p>

3

<p>If the case is not that extreme, will it be beneficial then?</p>