Figure 11-5
-What is true for both a monopolist and a perfect competitor?
A)Both maximize profits by producing where MR = MC.
B)Both have prices that are greater than marginal revenue
C)Both minimize average total cost.
D)Both face downward-sloping demand curve.

Question

Figure 11-5 
-What is true for both a monopolist and a perfect competitor?
A)Both maximize profits by producing where MR = MC. 
B)Both have prices that are greater than marginal revenue 
C)Both minimize average total cost. 
D)Both face downward-sloping demand curve.

Quizplus · Accepted Answer

Both a monopolist and a perfect competitor maximize profits by producing where MR = MC.

Figure 11-5 -What Is True for Both a Monopolist and a Perfect