If a pure monopolist is operating in a range of output where demand is elastic:

A) it cannot possibly be maximizing profits.
B) marginal revenue will be positive but declining.
C) marginal revenue will be positive and rising.
D) total revenue will be declining.

If the monopolist is operating in a range of output where demand is elastic, then any increase in price will cause a proportionately larger decrease in quantity demanded. Therefore, the monopolist cannot increase the price without losing a significant amount of customers. As a result, marginal revenue will be positive but declining, indicating that the firm is still able to earn additional revenue by producing more, but each additional unit sold will bring in less revenue than the previous unit. This means that the monopolist can still increase profits by producing more up to a certain point, but not by increasing the price.