In order to maximize profits, the monopolist will produce the output level where MR = MC and charge a price equal to MR and MC.

Question

Quizplus · Accepted Answer

While a monopolist will produce the output level where marginal revenue (MR) equals marginal cost (MC) to maximize profits, they will charge the highest price consumers are willing to pay for that quantity, which is generally above the MR and MC at that point.

In Order to Maximize Profits, the Monopolist Will Produce the Output