A single-price monopoly
A) sets a single, different price for each consumer.
B) sets a single price for all consumers.
C) asks each consumer what single price they would be willing to pay.
D) sets a single, different price for each of two different groups.
E) sells each unit of its output for the single, highest price that the buyer of that unit is willing to pay.

Question

Quizplus · Accepted Answer

A single-price monopoly sets the same price for all consumers, regardless of the quantity they purchase or their willingness to pay. This allows the monopoly to maximize profits by charging the highest possible price that the market will bear. If the monopoly were to set different prices for different consumers, it would risk losing sales to those who were unwilling or unable to pay the higher price, which would reduce its overall profits. Thus, a single, uniform price is the most effective pricing strategy for a monopoly.

A Single-Price Monopoly