For a monopolist, at the profit-maximizing level of output, price is:
A)equal to marginal revenue.
B)equal to marginal cost.
C)chosen according to demand.
D)increasing.

Question

Quizplus · Accepted Answer

In a monopoly, the price is determined by the demand curve at the profit-maximizing level of output, not directly by marginal cost or marginal revenue, although these factors influence the level of output.

For a Monopolist, at the Profit-Maximizing Level of Output, Price