Which of the following does a profit-maximizing monopolist set?
A) the product price where marginal revenue is greater than the price
B) the output where marginal cost equals average revenue
C) the output where marginal cost equals marginal revenue
D) the product price where marginal cost equals marginal revenue

Question

Quizplus · Accepted Answer

A profit-maximizing monopolist sets the output level where marginal cost (MC) equals marginal revenue (MR). This is the point where the additional cost of producing one more unit is exactly equal to the revenue generated from selling that additional unit, maximizing profit.

Which of the Following Does a Profit-Maximizing Monopolist Set