Question

Consider a monopolist that employs a uniform pricing strategy, whereby all units are sold for the same price. The price that will yield the firm the maximum total profit is:

Answer 1

A monopolist employing a uniform pricing strategy will maximize total profit by setting the quantity of output where marginal revenue equals marginal cost.

Step-by-step explanation:

A monopolist that employs a uniform pricing strategy will choose the price that maximizes its total profit by setting the quantity of output where marginal revenue (MR) equals marginal cost (MC).

Profits will be highest at the output level where total revenues exceed total costs by the greatest amount. Alternatively, profits will be highest where MR is equal to MC.