Author Question: A monopolist a. can charge whatever price it wants b. charges more than almost any consumer is ... (Read 49 times)

ghost! · **on:** Jun 30, 2018

A monopolist
a. can charge whatever price it wants
b. charges more than almost any consumer is willing to pay
c. is constrained by marginal cost in setting price
d. is constrained by demand in setting price
e. always earns an economic profit

Question 2

Production by a monopoly would result in the socially optimal allocation of resources if
a. price is set equal to marginal cost
b. marginal revenue is set equal to price
c. marginal revenue is set equal to marginal cost
d. price is set equal to average total cost
e. marginal revenue is set equal to average total cost