A monopolist:
A) Maximizes profit at the output where price equals marginal cost.
B) Charges a higher price than a competitive firm,ceteris paribus.
C) Is a price taker since it has market power.
D) Cannot earn an economic profit in the long run.

Question

Quizplus · Accepted Answer

A monopolist can charge a higher price than a competitive firm as it has market power, which allows it to set prices above marginal cost. Therefore, option B is correct while options A, C, and D are incorrect.

A Monopolist