The monopolist can choose:
A) any price for its product.
B) the demand curve.
C) price and quantity to produce.
D) price or quantity to produce.

Question

Quizplus · Accepted Answer

The monopolist can choose between producing a certain quantity and setting a corresponding price or producing a certain price and selling a corresponding quantity. The best choice for the monopolist will depend on the cost of production, the elasticity of demand, and the level of market competition. However, in general, the monopolist will aim to maximize profits by choosing the combination of price and quantity that generates the highest total revenue and takes into account the marginal cost of production.

The Monopolist Can Choose