According to the average cost-pricing rule, monopolists should produce at the quantity where the demand curve intersects the average total cost curve.

Question

Quizplus · Accepted Answer

The average cost-pricing rule suggests that monopolists should set prices where the demand curve intersects the average total cost curve to cover all costs, including normal profit, without making excess profit.

According to the Average Cost-Pricing Rule, Monopolists Should Produce at the Quantity