Final answer:
A monopolist might accept a less-than-maximum per-unit profit for several reasons, such as increasing sales, maintaining market share, and attracting price-sensitive customers.
Step-by-step explanation:
A monopolist might accept a less-than-maximum per-unit profit for several reasons:
- If the monopolist lowers the price, it can increase sales and make up for the lower profit margin with a larger quantity sold.
- If the monopolist faces competition from other firms, it might lower the price to maintain market share and prevent rivals from undercutting its prices.
- If the demand for the product is price-sensitive, reducing the price might attract more customers and increase overall revenue.