In the absence of price regulation, a monopolist:

Question

Quizplus · Accepted Answer

In the absence of price regulation, a monopolist charges a price above MC. This is because the monopolist has market power and can choose a price that maximizes their profits, which will be higher than the price that would be set in a competitive market. However, the monopolist will not charge a price equal to MR as this would result in zero profits. Rather, the monopolist will charge a price that is higher than MC but lower than MR, which will result in positive profits.

In the Absence of Price Regulation, a Monopolist