Which of the following is characteristic of the monopoly firm?
A)It produces the quantity of output at which marginal revenue equals marginal cost, MR = MC.
B)It charges a price per unit for its product that is equal to marginal cost.
C)It always earns a profit, because it is a single seller of a product.
D)a and b
E)a and c

Question

Quizplus · Accepted Answer

A monopoly firm maximizes profit by producing the quantity of output where marginal revenue equals marginal cost (MR = MC). However, it does not necessarily charge a price equal to marginal cost, nor does it always earn a profit, as it depends on the demand and cost conditions.

Which of the Following Is Characteristic of the Monopoly Firm