Answer to Question #49464 in Microeconomics for juan

Question

Consider a profit maximizing monopolist that employs a uniform pricing strategy. If it were to produce and price at a point on the inelastic segment of its demand curve, then it could:

Answer 1

If we consider a profit maximizing monopolist that employs a uniform pricing strategy and if it were to produce the output at price at a point on the inelastic segment of its demand curve, then it could raise total revenue by raising price. But if the demand is elastic, the monopolist needs to decrease price to raise total revenue.
So, the right answer is a) raise total revenue by raising price.