At the level of output at which a single-price monopolist maximizes profit, price is
A)equal to marginal cost.
B)equal to marginal revenue.
C)greater than marginal cost.
D)less than marginal cost.
E)less than marginal revenue.

Question

Quizplus · Accepted Answer

A single-price monopolist maximizes profit where marginal revenue equals marginal cost, and at this point, the price charged is greater than the marginal cost.

At the Level of Output at Which a Single-Price Monopolist