A monopolist will
A)never produce at an output level where marginal cost is positive
B)always produce at an output level where marginal revenue is positive
C)seek network externalities whenever switching costs are high
D)always produce where marginal revenue exceeds price
E)never produce where marginal revenue exceeds marginal cost

Question

Quizplus · Accepted Answer

A monopolist will always produce at an output level where marginal revenue is positive because producing where marginal revenue is negative would reduce total revenue.

A Monopolist Will