A monopolist will set:

Question

Quizplus · Accepted Answer

A monopolist will always aim to maximize profit, which occurs when marginal revenue (MR) equals marginal cost (MC). Therefore, the monopolist will set the price (P) based on where MR = MC, which is the point where profit is at its highest. Choosing option A or C is incorrect because a monopolist does not necessarily choose the quantity (Q) that will be produced and sold in the market, but rather sets the price based on profit maximization. Option D is also incorrect because a monopolist can set the price but must take into account demand elasticity and production costs to maximize profit.

A Monopolist Will Set