Both the perfectly competitive firm and the monopolist find that
A) price and marginal revenue are the same.
B) they can sell all they want to at the market price.
C) it is best to expand production until the benefit and the cost of the last unit produced are equal.
D) price is less than marginal revenue.
E) demand is not perfectly elastic.

Question

Quizplus · Accepted Answer

Both the perfectly competitive firm and the monopolist maximize profit by producing where marginal cost equals marginal revenue, which is the point where the benefit and cost of the last unit produced are equal.

Both the Perfectly Competitive Firm and the Monopolist Find That