The fundamental aim of a monopolist is to

charge a very high price
sell all what he has produced
earn maximum profits
ensure that costs are a declining function of output

The correct answer is C. earn maximum profits.

A monopolist is the only seller of a good or service in a market. This means that they have a great deal of power over the price they charge and the quantity they produce. A monopolist’s goal is to maximize profits, which means they will try to produce the

47.8C117.2 448 288 448 288 448s170.8 0 213.4-11.5c23.5-6.3 42-24.2 48.3-47.8 11.4-42.9 11.4-132.3 11.4-132.3s0-89.4-11.4-132.3zm-317.5 213.5V175.2l142.7 81.2-142.7 81.2z"/> Subscribe on YouTube
quantity of output where marginal revenue equals marginal cost. This is the point where the monopolist will earn the highest possible profit.

Option A is incorrect because a monopolist does not necessarily want to charge a very high price. In fact, if they charge a price that is too high, they may not be able to sell all of their output. Option B is incorrect because a monopolist does not necessarily want to sell all of what they have produced. In fact, if they produce too much output, they may not be able to charge a high enough price to earn maximum profits. Option D is incorrect because a monopolist does not necessarily want to ensure that costs are a declining function of output. In fact, if costs are declining, the monopolist may not be able to earn maximum profits.

Exit mobile version