A single-price monopolist's objective is to choose q such that:
A) .
B) .
C) .
D) .

Question

A single-price monopolist's objective is to choose q such that:
A) . 
B) . 
C) . 
D) .

Quizplus · Accepted Answer

A single-price monopolist's objective is to maximize profit, which is equal to total revenue minus total cost. The formula for total revenue is price times quantity (TR = P x Q). Therefore, the monopolist's objective is to choose the quantity that maximizes (P x Q) - TC, where TC is total cost. Option A represents this objective, while the other options do not mention both revenue and cost.

A Single-Price Monopolist's Objective Is to Choose Q Such That