A profit maximizing single-price monopolist charges a price equal to
A) average total cost.
B) marginal revenue.
C) the highest price consumers are willing to pay for the profit maximizing quantity.
D) the price necessary for the firm to earn a normal return on its investment.

Question

Quizplus · Accepted Answer

A profit-maximizing monopolist sets its price based on the demand curve, charging the highest price consumers are willing to pay for the quantity where marginal cost equals marginal revenue.

A Profit Maximizing Single-Price Monopolist Charges a Price Equal to