A monopolist will maximize its profit when it produces the quantity of output at which
A) MC is minimized.
B) MR = P.
C) MR = MC.
D) P is maximized.

Name: A monopolist will maximize its profit when it produces the quantity of output at which A) MC is minimized. B) MR = P. C) MR = MC. D) P is maximized.
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Question

Quizplus · Accepted Answer

A monopolist maximizes profit by producing the quantity of output where marginal revenue (MR) equals marginal cost (MC), not where price (P) equals marginal cost or any other conditions listed.

A Monopolist Will Maximize Its Profit When It Produces the Quantity