A monopolist is able to maximize its profits by
A. setting the price at the level that will maximize its per-unit profit.
B. producing output where MR = MC and charging a price along the demand curve.
C. setting output at MR = MC and setting price at the demand curve’s highest point.
D. producing maximum output where price is equal to its marginal cost.
Answer:B
A monopolist is able to maximize its profits by
A. setting the price at the level that will maximize its per-unit profit. B. producing output where MR = MC and charging a price along the demand curve. C. setting output at MR = MC and setting price at the demand curve’s highest point. D. producing maximum output where price is equal to its marginal cost.
Explanation: 24. Which one of the following is the most accurate description of a monopolist?