A monopoly will always charge a price that is ______________ (greater than / less than / equal to) marginal cost.

A monopoly will always charge a price that is greater than marginal cost.

Here's why:

1. A monopoly, by definition, is the only seller of a particular product or service in the market. This gives the monopoly power to set the price of the product or service.

2. The marginal cost of a product or service is the cost of producing one additional unit.

3. In a competitive market, firms are price takers and will set the price equal to the marginal cost. This is because if they set a price higher than the marginal cost, consumers will buy from a competitor offering a lower price. If they set a price lower than the marginal cost, they will make a loss on each additional unit sold.

4. However, a monopoly does not have this constraint. Since it is the only seller, it can set a price higher than the marginal cost without fear of losing customers to competitors.

5. Therefore, a monopoly will always charge a price that is greater than marginal cost. This allows the monopoly to maximize its profits.