A Monopolist Will Maximize Profits By

question 32

Multiple Choice

A monopolist will maximize profits by:

• A) setting his price as high as possible, while a perfectly competitive firm will take price from the market.
• B) setting his price at the level that will maximize per-unit profit, while a perfectly competitive firm will minimize per-unit loss.
• C) producing the output where marginal revenue equals marginal cost, just as a perfectly competitive firm will.
• D) producing the output where price equals marginal cost, while a perfectly competitive firm will produce where marginal revenue equals marginal cost.

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