A single-price monopolist will find when it produces its profit-maximizing amount of output that
A) price exceeds marginal revenue.
B) price exceeds marginal cost.
C) marginal revenue equals marginal cost.
D) All of the above occur at the profit-maximizing output level.

Question

Quizplus · Accepted Answer

In a single-price monopoly, the profit-maximizing output is where marginal revenue equals marginal cost (C). Additionally, because the monopolist faces a downward-sloping demand curve, price exceeds marginal revenue (A) and price also exceeds marginal cost (B). Therefore, all of the above occur at the profit-maximizing output level.

A Single-Price Monopolist Will Find When It Produces Its Profit-Maximizing