A single-price monopoly will set its price according to which of the following rules?
A) P = MR and MR = MC
B) P = MC where the MC curve crosses the demand curve
C) P = MR where the MR 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 cost (MC) equals marginal revenue (MR), but the price (P) is set above this point on the demand curve, not equal to MR or MC.

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