Which of the following is characteristic of the monopoly firm?
A)It produces the quantity of output at which marginal revenue equals marginal cost, MR = MC.
B)It charges a price per unit for its product that is equal to marginal cost.
C)It always earns a profit, because it is a single seller of a product.
D)It charges a price per unit for its product that is less that its marginal cost.

Question

Quizplus · Accepted Answer

A monopoly firm maximizes profit by producing the quantity of output where marginal revenue equals marginal cost (MR = MC).

Which of the Following Is Characteristic of the Monopoly Firm