For a monopolist, maximum profits will occur when the gap between average revenue (or price)and average cost is biggest.

Name: For a monopolist, maximum profits will occur when the gap between average revenue (or price)and average cost is biggest.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

For a monopolist, maximum profits occur where marginal cost equals marginal revenue, not necessarily where the gap between average revenue and average cost is biggest.

For a Monopolist, Maximum Profits Will Occur When the Gap