Many people believe that monopolies charge any price they want to without affecting sales.Instead,the output level for a profit-maximizing monopoly is determined by:

Question

Quizplus · Accepted Answer

A profit-maximizing monopoly will produce at the point where marginal cost equals marginal revenue, as this is the point at which the firm will earn the highest profit. Marginal revenue is dependent on demand, so the correct answer is D.

Many People Believe That Monopolies Charge Any Price They Want