For a monopoly in equilibrium:

Question

Quizplus · Accepted Answer

In order to maximize profits, a monopoly will produce where marginal revenue (MR) equals marginal cost (MC). This is because at this point, producing one more unit will bring in additional revenue equal to the additional cost, maximizing the difference between revenue and cost (i.e. profit). Therefore, the correct choice is C: MR = MC. In a monopoly in equilibrium, the optimal output level is where marginal revenue (MR) equals marginal cost (MC). This is because the monopolist will produce where marginal revenue is equal to marginal cost to maximize profits. Therefore, the correct answer is C) MR = MC.

For a Monopoly in Equilibrium