A monopolist produces an output level where marginal revenue equals marginal cost and charges a price where marginal cost equals average total cost.

Question

Quizplus · Accepted Answer

A monopolist produces an output level where marginal revenue equals marginal cost but charges a price based on the demand curve, which is typically above average total cost, not where marginal cost equals average total cost.

A Monopolist Produces an Output Level Where Marginal Revenue Equals