An un - regulated monopolist will likely
A)charge a price below MR.
B)charge a price above MC.
C)charge a price equal to MR.
D)charge a price below MR and charge a price above MC.

Question

Quizplus · Accepted Answer

An unregulated monopolist will charge a price higher than MC because their goal is to maximize profits, which occurs at the point where marginal revenue (MR) equals marginal cost (MC). However, since the monopolist has no competition, they have the ability to charge a higher price than what a competitive market would allow. Therefore, they would charge a price above MC, leading to excess profits.

An Un - Regulated Monopolist Will Likely