In a monopoly, consumers will purchase if their willingness-to-pay is above:
A)price
B)firm profit
C)marginal cost
D)marginal revenue

Question

Quizplus · Accepted Answer

Consumers in a monopoly will only purchase a good if their willingness-to-pay (or the maximum price they are willing to pay) is above the price charged by the monopoly. If the price is too high, consumers will not purchase the good and the monopoly will not generate any revenue.

In a Monopoly, Consumers Will Purchase If Their Willingness-To-Pay Is