A single- price monopoly will set its price according to which of the following rules?
A) P equals MR and MR equals MC
B) P equals MR where the MR curve crosses the demand curve
C) P equals MC where the MC curve crosses the demand curve
D) None of the above answers is correct.

Question

Quizplus · Accepted Answer

A single-price monopoly sets its price where marginal revenue (MR) equals marginal cost (MC), but the price (P) is set above MR on the demand curve. None of the given options correctly describe this rule.

A Single- Price Monopoly Will Set Its Price According to Which