The Monopolist's Profit-Maximizing Price Is $25 Per Unit and His

question 146

Multiple Choice

The monopolist's profit-maximizing price is $25 per unit and his marginal cost is $13.Consumers exist with reservation prices between $24 and $13 per unit.The monopolist is

• A) uninterested in the desires of these consumers.
• B) unwilling to sell to these consumers under any circumstance.
• C) willing to sell to these consumers at less than $25 per unit if his original customers continue to pay $25 per unit.
• D) willing to lower the price to everyone.
• E) worse off if he charges lower prices to these consumers while maintaining the higher price to the original consumers.

---

Definitions:

Service Organizations

Companies that provide intangible products to consumers, such as healthcare, education, and financial services.

Production Costs

The costs related to making or acquiring goods and services that a business provides, including labor, materials, and overhead expenses.

Transportation Costs

Expenses incurred in moving goods from one location to another, including freight, fuel, and maintenance expenses.

Location Decision Methods

Techniques and processes used to determine the best geographic location for a business or facility based on various criteria.