CFA Practice Question

CFA Practice Question

Which of the following is correct when there is equilibrium in a monopolistic market?
A. Charging buyers different prices based on how they value a good a good can lead to an increase in profits for the monopolist.
B. Maximum profit for a monopolist occurs at the point where the price charged equals marginal cost.
C. A monopolist can always increase profits by increasing prices.
Explanation: Charging buyers different prices ... is price discrimination.

Maximum profit for a monopolist occurs at the point where MR = MC.

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