Question

What must a monopoly, such as a public utility, account for when setting its prices?

A monopoly, because it has no competitors, can set prices as high as it likes.

A monopoly must consider customer demand, and then set prices at the most profitable level.

A monopoly must take into account what its top competitors are charging for the same product or service.

A monopoly has no say in what prices it will charge because the government sets the prices for all monopolistic industries.

Answer 1

A monopoly must consider customer demand, and then set prices at the most profitable level.