If a monopolist is maximizing its profits, we know that it has
A) maximized total revenue.
B) maximized marginal revenue.
C) minimized total cost.
D) equated marginal cost and marginal revenue.

Question

Quizplus · Accepted Answer

When a monopolist maximizes profits, it does so by producing the quantity of output where marginal revenue equals marginal cost. Therefore, the monopolist must have equated marginal cost and marginal revenue to maximize profits. While maximizing total revenue could be a strategy for a monopolist, it is not necessarily indicative of profit maximization. Similarly, minimizing total cost is important for profitability but does not directly relate to profit maximization.

If a Monopolist Is Maximizing Its Profits, We Know That