Explore BrainMass

Explore BrainMass

    profit maximizing

    Not what you're looking for? Search our solutions OR ask your own Custom question.

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    "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. "

    © BrainMass Inc. brainmass.com December 16, 2022, 5:17 am ad1c9bdddf

    Solution Preview

    In the case of a prescruption drug, or any other monopoly, the firm should set price at MC = MR. This is profit maximizing. The ...

    Solution Summary

    This solution briefly exemplifies profit maximizing. The geographically isolation for a gas station are determined.