Angelo is a wholesale meatball distributor. He sells his meatballs to all the finest Italian restaurants in town. Nobody can make meatballs like Angelo. As a result, his firm is the only business in town that sells meatballs to restaurants. Assuming that Angelo is maximizing his profit, which of the following statements is true?

Question

Answer

Meatball prices will exceed the marginal cost.

Answer

Meatball prices will be less than the marginal cost.

Answer

Meatball prices will equal to the marginal cost.

Answer

Meatball prices will be a function of supply and demand and will therefore oscillate around the marginal cost.

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Angelo is a wholesale meatball distributor. He sells his meatballs to all the fi...

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