A monopolist will operate where
A)MR = MC and charge a price equal to marginal revenue.
B)MR = MC and charge a price equal to marginal cost.
C)MR = MC and charge a price corresponding to demand at that level.
D)MC = MR and charge a price corresponding to average cost.

Question

Quizplus · Accepted Answer

A monopolist will operate where marginal revenue (MR) equals marginal cost (MC) but will charge a price based on the demand curve at that quantity, not necessarily equal to MR or MC.

A Monopolist Will Operate Where