To maximize profits, an unregulated natural monopoly produces at the level of output at which
A) average total cost is minimized.
B) production efficiency is maximized.
C) sales revenue is maximized.
D) marginal revenue equals marginal cost.

Question

Quizplus · Accepted Answer

To maximize profits, a firm (including an unregulated natural monopoly) produces at the level of output where marginal revenue equals marginal cost. This principle applies across different market structures to ensure profit maximization.

To Maximize Profits, an Unregulated Natural Monopoly Produces at the Level