"How high should a monopoly set its prices in order to maximize profits? When you post a response to this question, place it in the context of one of the following examples:
A geographically isolated gas station.
A concert on campus.
Soft drinks at a sporting event.
A prescription drug. "
In the case of a prescruption drug, or any other monopoly, the firm should set price at MC = MR. This is profit maximizing. The ...
This solution briefly exemplifies profit maximizing. The geographically isolation for a gas station are determined.