A monopolist will maximize profits by: Answer a. producing the output where pric

Question

A monopolist will maximize profits by:
Answer
a.
producing the output where price equals marginal cost.
b.
producing the output where marginal revenue equals marginal cost.
c.
setting his price at the level that will maximize per-unit profit.
d.
setting his price as high as possible.



Price discrimination requires:
Answer
a.
a firm to be a competitive firm.
b.
that the product can be easily resold.
c.
a firm to be able to segment its customers based on different price elasticities of demand.
d.
arbitrage.

Explanation / Answer

1) b. producing the output where marginal revenue equals marginal cost 2)a. a firm to be a competitive firm

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