Oligopolists will maximize total profits for all of the firms in the market at the rate of output where
A) TR = TC for the total market.
B) MR = MC for the marginal firm.
C) AR = AC for each firm.
D) MR = MC for the market.

Question

Quizplus · Accepted Answer

Oligopolists maximize total profits for all firms in the market at the point where marginal revenue (MR) equals marginal cost (MC) for the market as a whole. This principle aligns with the fundamental economic theory that profit maximization occurs when a firm's MR equals its MC, applied here to the collective output of the oligopolistic market.

Oligopolists Will Maximize Total Profits for All of the Firms