A monopolist that chooses price
A)necessarily produces less than a monopolist that chooses quantity, hence the laws against price fixing.
B)produces the same amount as a monopolist that chooses quantity.
C)produces more than a monopolist that chooses quantity, thus the irony of laws against price fixing.
D)can set price higher than the demand curve and earn additional profits, whereas a firm that chooses quantity cannot.

Question

Quizplus · Accepted Answer

A monopolist, regardless of whether they choose price or quantity, will operate at the same point on the demand curve where marginal cost equals marginal revenue. This results in the same quantity produced and price charged in equilibrium.

A Monopolist That Chooses Price