The monopolist is a a. price searcher who tries to find the rate of output that maximizes price. b. price taker who tries to find the profit-maximizing rate of output. c. price taker who tries to find the profit-maximizing price. d. price searcher who tries to find the profit-maximizing price-output combination.

The correct answer is D. a price searcher who tries to find the profit-maximizing price-output combination.

Explanation:

A monopolist is a person or a company who acts as the only supplier of the industry. As they have complete power as suppliers, they will set the price of the good or service and will NOT take the price as given.

A monopoly is going to search for the combination of price-output that maximizes the producer’s surplus. Remember that the producer's surplus is the total income that producers receive in exchange for a good, minus the total variable costs of that good. This combination is also the one that will maximize the monopoly's profits.

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