For both the monopolist and the perfectly competitive firm, profit is maximized at the level of output where
A) P = MC.
B) P = MR.
C) P = ATC.
D) MR = MC.

Question

Quizplus · Accepted Answer

Profit maximization for both monopolists and perfectly competitive firms occurs where marginal revenue (MR) equals marginal cost (MC), as this is the point where producing one more unit doesn't add to overall profit.

For Both the Monopolist and the Perfectly Competitive Firm, Profit