Which of the following seems the most likely pricing approach for a monopoly?
A) Charge customers whatever you please.
B) Give customers a real bargain on price.
C) Charge a price that will not cause consumer demand to drop.
D) Undercut the prices of the competition.

Question

Quizplus · Accepted Answer

As a monopoly, the company has no direct competition and can charge higher prices but if it charges too much, consumer demand will drop. Therefore, the best approach for a monopoly is to find the price point at which demand will remain steady but still allow for maximum profit, which is option C.

Which of the Following Seems the Most Likely Pricing Approach