A profit-maximizing monopolist sets
A)price equal to average cost.
B)price equal to marginal cost.
C)price equal to marginal cost plus a prorated share of overhead.
D)price equal to marginal revenue.
E)marginal revenue equal to marginal cost.

Question

Quizplus · Accepted Answer

A profit-maximizing monopolist sets the price where marginal revenue equals marginal cost. This is the point where the additional revenue from selling one more unit equals the additional cost of producing that unit, maximizing profit.

A Profit-Maximizing Monopolist Sets