Solved

Suppose That a Monopolist Charges a Uniform Price of $10

Question 171

Multiple Choice

Suppose that a monopolist charges a uniform price of $10 based on profit maximization and has a constant marginal cost of $3.Beth is willing to pay $6 for the monopolist's output.Therefore,


A) the monopolist should lower his price to $6 for all consumers.
B) the monopolist should ignore Beth's want;he is already maximizing profit.
C) if resale of the output is impossible,the monopolist should lower his price to $6 just for Beth.
D) if resale of the output is possible,he should lower his price to $6 just for Beth.
E) the monopolist will not be better off if he lowers his price to $6 just for Beth.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions