Which of the following is the most likely pricing approach for a monopoly?
A) Charge customers whatever you please.
B) Give customers a real bargain on price.
C) Charge a price that will not cause consumer demand to drop.
D) Undercut the prices of the competition.
E) Give customers a fair price that cannot be matched by competitors.

Question

Quizplus · Accepted Answer

C) A monopoly happens when one firm dominates the market. The monopolizing firm does not have to factor competitors' prices when determining its own prices, so it only needs to charge a price that will not be so high that it causes demand to drop.

Which of the Following Is the Most Likely Pricing Approach