Explain how a profit-maximizing monopolist chooses its level of output and the price of its goods
A profit-maximizing monopolist produces the output level where marginal revenue equals marginal cost and charges the corresponding price from the market demand curve. Note that a monopolist charges a price that exceeds marginal cost, unlike a competitive firm, for which price equals marginal cost.
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Growth in real GDP per capita for the world economy was greatest during
A) the seventeenth century. B) the eighteenth century. C) the nineteenth century. D) the twentieth century.
Which of the following goods would have the most inelastic demand?
A) bread B) big screen TVs C) luxury cars D) ski vacations
The economic view of the consumer as king is reflected most appropriately by the expression
a. ceteris paribus b. post hoc, ergo propter hoc c. consumer sovereignty d. ipso facto e. les miserables
Chris received a consumer surplus of $50 when he purchased a watch for $100 . This implies he was willing to pay _____ for the watch
a. $215 b. $150 c. $100 d. $50