56.8k views
3 votes
For a monopolist that is maximizing profits Question 2 options: A) marginal revenue exceeds price. B) price equals average total cost. C) price exceeds marginal cost. D) price equals marginal revenue.

User Matthew M
by
6.1k points

1 Answer

1 vote

Answer:

C) price exceeds marginal cost.

Step-by-step explanation:

A monopoly is when there is only one firm operating in an industry. there is usually high barriers to entry of firms. the demand curve is downward sloping. it sets the price for its goods and services.

An example of a monopoly is an utility company

Because the demand curve is downward sloping, marginal revenue is less than price. As prices fall, more units of the product is bought.

User Rama Vadakattu
by
5.4k points