To maximize profit, a monopolist should charge a lower price in the market with the steeper demand curve.

Question

Quizplus · Accepted Answer

A monopolist should charge a higher price in the market with the steeper demand curve because it indicates that consumers are willing to pay more for the product. This allows the monopolist to maximize their profit by selling fewer units at a higher price, rather than selling more units at a lower price.

To Maximize Profit, a Monopolist Should Charge a Lower Price