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

Question

Quizplus · Accepted Answer

A single-price monopolist maximizes profits by producing the output where marginal revenue equals marginal cost. This is the point where the additional cost of producing one more unit equals the additional revenue gained from selling that unit.

A Single-Price Monopolist Maximizes Profits by Producing the Output at Which