An important assumption about a monopoly is that it behaves as a:
A)price maximiser
B)profit maximiser
C)revenue maximiser
D)wage minimiser

Question

Quizplus · Accepted Answer

Monopolies operate to maximize profits, not necessarily to maximize revenue or set the highest possible price. They have the power to set higher prices and restrict output, which they use to maximize their profits. Wage minimization is not a concern for monopolies as they often provide higher wages to attract skilled workers.

An Important Assumption About a Monopoly Is That It Behaves