Under which of the following conditions would a profit-maximizing monopolist necessarily raise price?
A)if product demand was price-elastic
B)if marginal revenue is positive
C)if marginal revenue was greater than marginal cost
D)if marginal cost was greater than marginal revenue

Question

Quizplus · Accepted Answer

A profit-maximizing monopolist would raise the price when marginal cost is greater than marginal revenue. This is because, in such a scenario, reducing output would increase profits as the cost of producing an additional unit exceeds the revenue it generates.

Under Which of the Following Conditions Would a Profit-Maximizing Monopolist