To maximize profit, a monopoly firm determines its _______ , _______ , and _______ curves and produces an output where _______ .

Question

Quizplus · Accepted Answer

A monopoly firm maximizes profit by producing at the quantity where marginal revenue (MR) equals marginal cost (MC), as long as the price is equal to or greater than average variable cost. The firm determines its output level by analyzing its demand curve, marginal revenue curve, and marginal cost curve. Therefore, only option B includes demand, marginal revenue, and marginal cost curves, and the condition MR=MC.

To Maximize Profit, a Monopoly Firm Determines Its _______