Asked by
Raveline Irene
on Nov 26, 2024
Verified
In the short run a pure monopolist will maximize profits by producing at that level of output where the difference between price and average total cost is at a maximum.
Average Total Cost
The total cost of production (fixed plus variable costs) divided by the number of units produced, indicating the cost per unit of output.
Pure Monopolist
A market structure in which a single seller dominates the entire market, facing no competition.
- Familiarize yourself with the idea of marginal revenue and understand its effect on the monopolist's decisions related to pricing and output.
Verified Answer
SK
Learning Objectives
- Familiarize yourself with the idea of marginal revenue and understand its effect on the monopolist's decisions related to pricing and output.