When the monopolist decides to supply a given amount to the market,it will:
A) set the price equal to marginal cost.
B) set the price higher than what demanders are willing to pay for that amount.
C) only sell that amount if it charges what the demanders are willing to pay for that amount.
D) set the price lower than the demand curve to create a perceived shortage.

Question

Quizplus · Accepted Answer

A monopolist will set the price at the highest level that consumers are willing to pay for the given quantity, which is determined by the demand curve.

When the Monopolist Decides to Supply a Given Amount to the Market,it