(Figure: Monopoly Markup) Refer to the figure. Themonopolist's markup is:Figure: Monopoly Markup

Name: (Figure: Monopoly Markup) Refer to the figure. Themonopolist's markup is:Figure: Monopoly Markup
Brand: Quizplus
Rating: 4.9 (48 reviews)

Question

Quizplus · Accepted Answer

The monopolist's markup is the difference between the price (P) and the marginal cost (MC), which is equal to b - d in the graph. This represents the amount of profit the firm is able to earn by charging a price above its costs.

(Figure: Monopoly Markup) Refer to the Figure