When a firm operates under conditions of a monopoly, its price is constrained by marginal cost.

Name: When a firm operates under conditions of a monopoly, its price is constrained by marginal cost.
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When a firm operates under conditions of a monopoly, it has the power to set its own price because it is the only supplier in the market. It can choose a price that maximizes its profits, which may be higher than the marginal cost of production.

When a Firm Operates Under Conditions of a Monopoly, Its