Single-price monopolies maximize profit by producing the amount of output where
A) total revenue is maximized.
B) price is equal to marginal cost.
C) price is equal to marginal revenue.
D) marginal revenue is equal to marginal cost.

Question

Quizplus · Accepted Answer

Single-price monopolies maximize profit by producing the amount of output where marginal revenue is equal to marginal cost. At this output level, the monopoly can charge a price higher than marginal cost, resulting in a markup and maximizing its profit.

Single-Price Monopolies Maximize Profit by Producing the Amount of Output