Final answer:
Angelo, as a monopolistic distributor of meatballs, will maximize profit by setting prices where C. meatball prices exceed marginal costs, affirming that costs are relevant to his monopoly.
Step-by-step explanation:
In the context of profit maximization for a monopoly, such as the meatball distribution business run by Angelo, we look at the firm's marginal revenues (MR) and marginal costs (MC). According to economic theory, to maximize profits, a monopolist like Angelo would set a quantity where marginal revenue equals marginal cost (MR=MC). This principle is similar to that of a monopolistic competitor, like the Authentic Chinese Pizza shop, which also seeks to maximize profit by producing a quantity where MR=MC, as characterized by a downward sloping demand curve.
Given this principle, the correct statement in the context of Angelo's meatball business is that meatball prices will exceed marginal cost (C), because this is the price that will prevail in the market where Angelo is utilizing his monopoly power to maximize profits. It is important to note that costs are indeed relevant to Angelo despite his monopolistic status, as his profit maximization still depends on the relationship between marginal cost and marginal revenue.