Along with the monopoly firms' cost curves, the shape and position of the demand curve determine which of the following?
(i) the price the monopoly will charge for its good
(ii) the shape and position of the marginal-revenue curve
(iii) the profit-maximising quantity
A)(i) and (ii)
B)(ii) and (iii)
C)(i) and (iii)
D)(i), (ii) and (iii)

Question

Quizplus · Accepted Answer

The shape and position of the demand curve directly influence the price a monopoly can charge (i), shape the marginal-revenue curve since it's derived from the demand curve (ii), and determine the profit-maximizing quantity where marginal cost equals marginal revenue (iii).

Along with the Monopoly Firms' Cost Curves, the Shape and Position