WHEN A SINGLE PRICE MONOPOLIST MAXIMIZES PROFITS,PRICE IS GREATER THAN MARGINAL COST. IN OTHER WORDS BUYERS ARE WILLING TO PAY MORE FOR ADDITIONAL UNITS OF OUTPUTTHAN THE UNITS COST TO PRODUCE.GIVIN THIS,WHY DOESNT THE MONOPOLIST PRODUCE MORE?

Expert Answers

An illustration of the letter 'A' in a speech bubbles

All firms in whatever market structures, want to maximize their profits or minimize their losses.  In all market structures, this is done by producing at the quantity...

(The entire section contains 93 words.)

Unlock This Answer Now

Start your 48-hour free trial to unlock this answer and thousands more. Enjoy eNotes ad-free and cancel anytime.

Start your 48-Hour Free Trial
Approved by eNotes Editorial Team