A monopolist chooses its profit-maximizing quantity by:
A)selling as much as it can produce.
B)producing at the level of output at which marginal revenue equals zero.
C)following the same rule as a perfectly competitive firm does.
D)selling the amount at which price equals average total cost.

Question

Quizplus · Accepted Answer

A monopolist, like a perfectly competitive firm, maximizes profit by producing at the level of output where marginal cost equals marginal revenue. This rule applies across different market structures for profit maximization.

A Monopolist Chooses Its Profit-Maximizing Quantity By