A firm will buy monopoly power until the marginal cost of having a monopoly:
A) equals the marginal benefit.
B) equals the price of its product.
C) is more than the marginal benefit.
D) is less than the marginal benefit.

Question

Quizplus · Accepted Answer

A firm will buy monopoly power until the marginal cost of having a monopoly equals the marginal benefit, as this is the point where profit is maximized.

A Firm Will Buy Monopoly Power Until the Marginal Cost