A profit-maximizing monopolist will produce the level of output where
A) marginal revenue is zero.
B) marginal cost is minimized.
C) price equals marginal cost.
D) marginal revenue equals marginal cost.

Question

Quizplus · Accepted Answer

A profit-maximizing monopolist, like any firm, will produce the level of output where marginal revenue (MR) equals marginal cost (MC) to maximize profits. This is because producing more would add more to cost than to revenue, and producing less would add more to revenue than to cost.

A Profit-Maximizing Monopolist Will Produce the Level of Output Where