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What is the correct answer?

4

A monopolist is:

A. Price winner

B. Price searcher

C. Price taker

D. Price leaver

Correct Answer :

B. Price searcher


Unlike a perfectly competitive firm, the monopolist does not have to simply take the market price as given. Instead, the monopolist is a price searcher; it searches the market demand curve for the profit maximizing price. The monopolist's search for the profit maximizing price involves comparing the marginal revenue and marginal cost associated with each possible price-output combination on the market demand curve.}

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