A monopolist seeking to maximize total profits will
A) maximize profit per unit.
B) minimize cost per unit.
C) charge the highest possible price.
D) set price equal to average total cost.
E) set marginal cost equal to marginal revenue.

Question

Quizplus · Accepted Answer

A monopolist maximizes total profits by setting the level of output where marginal cost (MC) equals marginal revenue (MR), not necessarily by maximizing profit per unit, minimizing cost per unit, charging the highest possible price, or setting price equal to average total cost.

A Monopolist Seeking to Maximize Total Profits Will