Question

If a monopolist's marginal costs increase by $1 for all levels of output, then the monopoly price will Group of answer choices rise by $1. rise by more than $1. rise by less than $1. not change, but profits will decrease.

Answer 1

If the marginal cost of a monopolist rises by $1 across all levels of output, then their price will rise by less than $1.

What happens when a monopoly's marginal cost rises?

When monopolies go through a situation where their marginal costs rise, they end up raising their prices as well.

The price rise will be less than the increase in marginal cost in order to prevent losing too much demand for their goods.

Find out more on monopoly marginal pricing at https://brainly.com/question/23898892.

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