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Because the Monopolist Doesn't Pay Attention to the Willingness to Pay

Question 26

Multiple Choice

Because the monopolist doesn't pay attention to the willingness to pay of inframarginal consumers:


A) there can sometimes be a difference between what level of product quality is profitable for the monopolist and what level of product quality maximizes aggregate surplus.
B) the monopolist will choose the optimal level of product quality.
C) the quantity chosen by the monopolist will sometimes maximize aggregate surplus.
D) there can never be a difference between the marginal cost of higher product quality and the marginal value to consumers of higher product quality.

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