When a firm operates under conditions of monopoly, its price is:

a. Not constrained,

b. Constrained by marginal cost,

c. Constrained by demand,

d. Constrained only by its social agenda.

The correct answer is c. Constrained by demand.

Reason: The monopoly firm can change the prices based on quantity produced and demand in the market as it is a single source of goods and has more power in a market. When a monopolist manufactures the quantity according to the intersection point of marginal revenue and marginal cost, then the firm sets the prices based on the market demand curve at a specific quantity.

So, a company that carries on business in the monopoly form of market, then its prices are controlled by the demand force.