A single-price monopolist will maximize profit by producing so that marginal revenue
A) exceeds marginal cost.
B) is less than marginal cost.
C) equals marginal cost.
D) equals price.

Question

Quizplus · Accepted Answer

A single-price monopolist maximizes profit by producing where marginal revenue equals marginal cost, as this is the point where the cost of producing an additional unit is exactly covered by the revenue it generates.

A Single-Price Monopolist Will Maximize Profit by Producing So That