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Question 12

0.5 pts
The goal of any monopolist is to maximize:
economic profits.
normal profits.
price.
consumer welfare.
output.

User Alok Nayak
by
8.5k points

1 Answer

4 votes

Answer:

economic profits.

Step-by-step 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. This ultimately implies that, it is a market structure wherein the seller has no competitor because he is solely responsible for the sale of unique products without close substitutes.

Also, a monopolist refers to any individual that deals with the sales of unique products in a monopolistic market.

Generally, the goal of any monopolist is to maximize economic profits.

Basically, a monopolist earns an economic profit when the average total cost (AVC) of his goods and services is less than price.

Unlike a business firm operating in a perfectly competitive market, a monopolist can continue to earn economic profits in the long-run because there exist an extremely high level of barriers to entry for new business firms.

User Helgeheldre
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8.2k points
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