Two nonexclusive decisions that marginal analysis helps a monopolist make are what _____ and what _____.
A) market to operate in; product to produce
B) product to produce; quantity to sell
C) quantity to sell; market to operate in
D) price to charge; quantity to sell

Question

Quizplus · Accepted Answer

Marginal analysis helps a monopolist decide the optimal price to charge for their product and the quantity of the product to sell in order to maximize profits. This involves comparing the marginal cost of producing one more unit with the marginal revenue gained from selling that additional unit.

Two Nonexclusive Decisions That Marginal Analysis Helps a Monopolist Make