Question

The monopolist sets price by
Part 2
A.
charging the price where marginal revenue equals price.
B.
charging the price where marginal cost equals price.
C.
producing the quantity where marginal cost equals marginal revenue and charging the price that corresponds to that quantity.
D.
charging the price where average total cost equals marginal cost.

Answer 1

C. producing the quantity where marginal cost equals marginal revenue and charging the price that corresponds to that quantity.