When a monopolist maximizes profit, its marginal cost will

A. be less than its average fixed cost.

B. be less than the price per unit of its product.

C. exceed its marginal revenue.

D. equal its average total cost.

Question

William Hartman

Business

16 July, 15:17

When a monopolist maximizes profit, its marginal cost will

A. be less than its average fixed cost.

B. be less than the price per unit of its product.

C. exceed its marginal revenue.

D. equal its average total cost.

+2

Answers (1)

Know the Answer?

Camden Bean · Answer 1

B)

Explanation:

Like you can see in the graph, the monopolist quantity is the intersection between the Marginal Revenue and the Marginal Cost. The price is determined for this quantity with the demand line. Due to that, the price is always higher thn the marginal cost

When a monopolist maximizes profit, its marginal cost willA. be less than its average fixed cost.B. be less than the price per unit of its product.C. exceed its marginal revenue.D. equal its average total cost.

When a monopolist maximizes profit, its marginal cost will

A. be less than its average fixed cost.

B. be less than the price per unit of its product.

C. exceed its marginal revenue.

D. equal its average total cost.