The MR = MC rule
A)applies only to pure competition.
B)applies only to pure monopoly.
C)does not apply to pure monopoly, because price exceeds marginal revenue.
D)applies both to pure monopoly and pure competition.

Question

Quizplus · Accepted Answer

The MR = MC (Marginal Revenue equals Marginal Cost) rule is a fundamental principle in economics that applies to all types of market structures, including both pure competition and pure monopoly, to determine the profit-maximizing level of output.

The MR = MC Rule