A monopolist that maximizes total revenue earns maximum economic profit.

Name: A monopolist that maximizes total revenue earns maximum economic profit.
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Question

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A monopolist maximizes profit by producing the quantity at which marginal revenue equals marginal cost. This quantity is generally less than the quantity that would maximize total revenue. Therefore, a monopolist that maximizes total revenue may not necessarily earn maximum economic profit.

A Monopolist That Maximizes Total Revenue Earns Maximum Economic Profit