The monopolist always maximizes its profits by producing the amount of output that sets the marginal revenue equal to zero.

Name: The monopolist always maximizes its profits by producing the amount of output that sets the marginal revenue equal to zero.
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Question

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A monopolist maximizes profits by producing the quantity where marginal revenue equals marginal cost, not where marginal revenue is zero.

The Monopolist Always Maximizes Its Profits by Producing the Amount