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4 years ago

At the level of output at which a single-price monopolist maximizes profit, price is Group of answer choices

Business

1 answer:

Sladkaya [172]4 years ago

6 0

Answer:

Greater than marginal cost.

Explanation:

A monopoly is a market structure which is typically characterized by a single-seller who sells a unique product in the market by dominance. It is also known as oligopoly, wherein the seller has no competitor because he is solely responsible for the sale of unique products without close substitutes. Any individual that deals with the sales of unique products in a monopolistic market is generally referred to as a monopolist.

Also, a single-price monopolist is an individual or seller that sells each unit of its products to all its customer at the same price. Hence, a single-price monopolist doesn't engage in price discrimination among its customers (buyers).

At the level of output at which a single-price monopolist maximizes profit, price is greater than marginal cost because the marginal revenue would be below the demand curve.

However, if the marginal cost is greater than the price, the monopolist will not make any profit.

<em>In a nutshell, profit maximization for the single-price monopolist occurs at the point where marginal cost is equal to marginal revenue (MC = MR) on the graph of price (P) against quantity (Q) of goods. </em>

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Answer:

See below

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Answer:

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3-a)

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3-b)

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