A single-price monopoly charges the same price A

Marketing Dec 28, 2020

A single-price monopoly charges the same price

A. even if the demand curve shifts.

B. to all customers.

C. even if its cost curves shift.

D. and the price equals the firm's marginal revenue.

Expert Solution

The correct option is B. To all customers.

In the case of the single-price monopoly, the monopolist values each customer equally. Therefore, the monopoly firm doesn't involve itself in any types of price discrimination and charges the same price to all its customers.

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