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Homework answers / question archive / If, at the output where marginal cost equals marginal revenue, both a pure competitor's and a monopolist's marginal revenue is $5
If, at the output where marginal cost equals marginal revenue, both a pure competitor's and a monopolist's marginal revenue is $5.00:
A) both sellers' profit-maximizing price will be $5.00.
B) both sellers' profit-maximizing price will be greater than $5.00.
C) the pure competitor's profit-maximizing price will be $5.00, and the monopolist's profit-maximizing price will be greater than $5.00.
D) the monopolist's profit-maximizing price will be $5.00, and the pure competitor's profit-maximizing price will be greater than $5.00.
E) None of the above is correct.
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