The pricing rule for a monopolist who produces a divisible good is ________.
A) P = MR MC
B) P MR MC
C) P = MR = MC
D) P MR = MC

Name: The pricing rule for a monopolist who produces a divisible good is ________. A) P = MR > MC B) P > MR > MC C) P = MR = MC D) P > MR = MC
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Question

The pricing rule for a monopolist who produces a divisible good is ________.
A) P = MR > MC
B) P > MR > MC
C) P = MR = MC
D) P > MR = MC

Quizplus · Accepted Answer

Monopolists set prices where marginal revenue (MR) equals marginal cost (MC), but due to their market power, the price (P) they charge is higher than both MR and MC.

The Pricing Rule for a Monopolist Who Produces a Divisible