If a monopolist's price were $8,it is likely that in equilibrium
A)MC = MR,and both are less than $8.
B)MC = MR,and both are more than $8.
C)MC = MR,and both are equal to $8.
D)None of the choices are correct.

Question

Quizplus · Accepted Answer

In a monopolist's equilibrium, the price is always above the marginal cost (MC) and marginal revenue (MR) because the monopolist sets the output where MC equals MR and then charges the highest price consumers are willing to pay for that quantity, which is above the MC and MR.

If a Monopolist's Price Were $8,it Is Likely That in Equilibrium