A profit- maximising single- price monopolist charges a price equal to

Question

Quizplus · Accepted Answer

A profit-maximising single-price monopolist sets the price based on the highest price consumers are willing to pay for the profit-maximising quantity, which is determined by where marginal revenue equals marginal cost, not directly at the point of marginal revenue or average total cost. This price is above marginal cost and allows the monopolist to earn economic profits if possible.

A Profit- Maximising Single- Price Monopolist Charges a Price Equal