If a monopolist is maximising profits, then it is producing an amount of output so that
A) MR = ATC.
B) MR = MC.
C) MR = TC.
D) MC = AVC.

Name: If a monopolist is maximising profits, then it is producing an amount of output so that A) MR = ATC. B) MR = MC. C) MR = TC. D) MC = AVC.
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Question

Quizplus · Accepted Answer

A monopolist maximizes profits where marginal revenue (MR) equals marginal cost (MC), as this is the point where producing one more unit would not increase profits further.

If a Monopolist Is Maximising Profits, Then It Is Producing