-In order to maximise its profit, a single-price monopoly produces the amount of output so that
A) P = ATC.
B) MR = MC.
C) P = MC.
D) P = MC - MR.
E) P = MR.

Question

-In order to maximise its profit, a single-price monopoly produces the amount of output so that
A) P = ATC. 
B) MR = MC. 
C) P = MC. 
D) P = MC - MR. 
E) P = MR.

Quizplus · Accepted Answer

A single-price monopoly maximizes its profit by producing the quantity of output where marginal revenue (MR) equals marginal cost (MC). This is because at this point, the cost of producing one more unit is exactly balanced by the revenue gained from selling that unit, ensuring no additional unit could be produced and sold for a profit.

-In Order to Maximise Its Profit, a Single-Price Monopoly Produces