Angelo is a wholesale meatball distributor.He sells his meatballs to all the finest Italian restaurants in town.Nobody can make meatballs like Angelo.As a result,his is the only business in town that sells meatballs to restaurants.Assuming that Angelo is maximizing his profit,how will meatball prices compare with marginal cost
A) Meatball prices will be less than marginal cost.
B) Meatball prices will equal marginal cost.
C) Meatball prices will exceed marginal cost.
D) Meatball prices will be a function of supply and demand and will therefore fluctuate around marginal costs.
Correct Answer:
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