Monopolies charge
A)the highest possible price
B)a price determined by cost
C)the price consistent with the output level where total revenue equals total cost
D)the price associated with the quantity at which marginal revenue equals marginal cost
E)the price at which total revenue equals average total cost

Question

Quizplus · Accepted Answer

Monopolies maximize profit by producing the quantity where marginal revenue equals marginal cost and charging the price consumers are willing to pay for that quantity.

Monopolies Charge