For a monopoly firm, the shape and position of the demand curve play a role in determining the
(i)profit-maximizing price.
(ii)shape and position of the marginal-cost curve.
(iii)shape and position of the marginal-revenue curve.
A)(i) and (ii) only
B)(ii) and (iii) only
C)(i) and (iii) only
D)(i), (ii), and (iii)

Question

Quizplus · Accepted Answer

The demand curve affects the profit-maximizing price and the marginal-revenue curve, but not the marginal-cost curve, which is determined by production technology and costs.

For a Monopoly Firm, the Shape and Position of the Demand