Economists assume that monopolists behave as
A)cost minimizers.
B)profit maximizers.
C)price maximizers.
D)maximizers of social welfare.

Question

Quizplus · Accepted Answer

Monopolists aim to maximize their profits by producing the level of output where marginal revenue equals marginal cost and then charging the highest price possible for that level of output. This behavior is consistent with profit maximization, not cost minimization, price maximization, or social welfare maximization.

Economists Assume That Monopolists Behave as