A necessary condition for a monopolist to maximize profit is that:
A)the slope of the TC and TR functions are the same.
B)the last unit produced reduced revenue and cost by the same amount.
C)the TC curve is upward sloping.
D)it is producing at the minimum of its AC function.

Question

Quizplus · Accepted Answer

The condition for a monopolist to maximize profit is where the slope of the Total Cost (TC) and Total Revenue (TR) functions are the same, which means marginal cost equals marginal revenue.

A Necessary Condition for a Monopolist to Maximize Profit Is