When the monopolist chooses its quantity supplied, it will:
A)set the price equal to marginal cost.
B)set the price higher than what consumers are willing to pay for that quantity.
C)set the price equal to the amount consumers are willing to pay for that quantity.
D)set the price lower than the demand curve to create a perceived shortage.

Question

Quizplus · Accepted Answer

A monopolist sets the price based on the demand curve for the quantity it chooses to supply, which means it sets the price equal to the amount consumers are willing to pay for that quantity.

When the Monopolist Chooses Its Quantity Supplied, It Will