At the profit-maximizing output of the monopolist, the price will be equal to the marginal cost.

Name: At the profit-maximizing output of the monopolist, the price will be equal to the marginal cost.
Brand: Quizplus
Rating: 4.7 (40 reviews)

Question

Quizplus · Accepted Answer

In a monopoly, the profit-maximizing output occurs where marginal revenue equals marginal cost, not where price equals marginal cost. The price is set above marginal cost.

At the Profit-Maximizing Output of the Monopolist, the Price Will