Which of the following is the MOST likely pricing approach for a monopoly?
A) Charge customers whatever you please
B) Give customers a real bargain on price
C) Charge a price that will not cause consumer demand to drop
D) Undercut the prices of the competition
E) Give customers a fair price that cannot be matched by competitors

Question

Quizplus · Accepted Answer

A monopoly has the power to charge whatever price they want, but doing so may lead to decreased demand for their product. Therefore, the most likely pricing approach for a monopoly is to charge a price that will not cause consumer demand to drop, while still maximizing profits.

Which of the Following Is the MOST Likely Pricing Approach