Which of the following is correct for a single-price monopoly?
i.The firm can determine the quantity it produces and the price it charges.
ii.It would never profitably produce output in the inelastic range of its demand.
iii.Its marginal revenue is less than price.
A) i only
B) i and iii
C) ii only
D) ii and iii
E) i, ii, and iii

Question

Quizplus · Accepted Answer

A single-price monopoly can set both the price and quantity, avoids producing in the inelastic range of demand to maximize profits, and has marginal revenue less than price due to the downward-sloping demand curve.

Which of the Following Is Correct for a Single-Price Monopoly