At the profit-maximizing level of output for the monopolist:

Question

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The profit-maximizing level of output for the monopolist occurs where marginal revenue is equal to marginal cost. This is because to maximize profit, the firm should produce up to the point where the additional revenue generated from selling one more unit (marginal revenue) is equal to the cost of producing that unit (marginal cost). Choices A, B, and E are incorrect because they do not necessarily lead to profit maximization for the firm. Total revenue may be greater than total cost, but this does not necessarily mean that profit is maximized. Similarly, minimizing total costs or having average revenue equal to average cost do not necessarily lead to profit maximization.

At the Profit-Maximizing Level of Output for the Monopolist