How does a single-price monopoly determine the price it will charge its customers?
What will be an ideal response?
The market demand curve is the monopolist's demand curve. The demand curve shows the maximum price at which the monopoly can sell its profit-maximizing level of output. So the monopoly finds the quantity it will produce and then uses its demand curve—the market demand curve—to determine the price it will charge.
You might also like to view...
Which of the following is true of Antitrust policy?
a. Antitrust policy prohibits agreements that allow free trade. b. Antitrust policy restricts abusive behavior by a firm dominating a market. c. Antitrust policy allows anti-competitive practices. d. Antitrust policy restricts subsidies in goods and services. e. Antitrust policy creates trade barriers like tariffs and quota.
When many banks fail simultaneously, this is known as a
a. run on the bank b. depression c. recession d. banking panic e. Federal Reserve crisis