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The pure monopolist seeks the output that will yield the greatest per-unit profit due to:

A. Elastic demand
B. Inelastic demand
C. Perfect competition
D. Monopolistic competition

1 Answer

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Final answer:

A pure monopolist seeks the output that will yield the greatest per-unit profit due to the monopoly's less elastic demand curve. The correct answer is D. Monopolistic competition.

Step-by-step explanation:

A pure monopolist seeks the output that will yield the greatest per-unit profit due to the monopoly's demand curve being less elastic compared to other competitive market structures.

In a perfect competition, the demand curve faced by a firm is perfectly elastic, meaning it can sell all the output it wishes at the prevailing market price. On the other hand, a monopoly faces the market demand curve, which is less elastic, and can only sell more output by decreasing the price it charges. As a result, the monopolist aims to maximize per-unit profit by finding the quantity where marginal revenue is equal to marginal cost.

Therefore, the correct answer is D. Monopolistic competition.

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