As long as the demand curve lies above the marginal revenue curve for a monopolist, it will charge a price for its product that is
A)above total cost.
B)below marginal cost.
C)above marginal cost.
D)above average total cost.
E)c and d

Question

Quizplus · Accepted Answer

A monopolist maximizes profit by producing where marginal cost equals marginal revenue and charges a price based on the demand curve, which is above the marginal cost.

As Long as the Demand Curve Lies Above the Marginal