A single- price monopolist maximises profits by producing the output at which
A) marginal cost equals average cost.
B) marginal revenue equals marginal cost.
C) price equals marginal cost.
D) price equals marginal revenue.

Question

Quizplus · Accepted Answer

A single-price monopolist maximizes profits by producing the output at which marginal revenue equals marginal cost. This is the fundamental rule for profit maximization in economics, applicable to firms in various market structures, including monopolies.

A Single- Price Monopolist Maximises Profits by Producing the Output