An unregulated pure monopolist will maximize profits by producing that output at which
A)P = MC.
B)P = ATC.
C)MR = MC.
D)MC = AC.

Question

Quizplus · Accepted Answer

A pure monopolist maximizes profits by producing at the level of output where marginal revenue (MR) equals marginal cost (MC). This is the point where the additional revenue from selling one more unit equals the additional cost of producing that unit.

An Unregulated Pure Monopolist Will Maximize Profits by Producing That