A monopoly chooses to supply the market with a quantity of goods that is determined by the intersection of the
A)marginal cost and demand curves.
B)average total cost and demand curves.
C)marginal revenue and average total cost curves.
D)marginal revenue and marginal cost curves.

Question

Quizplus · Accepted Answer

A monopoly maximizes its profits by producing at the point where marginal revenue equals marginal cost. Therefore, the best choice is D, which states that the quantity of goods produced by the monopoly is determined by the intersection of the marginal revenue and marginal cost curves. The other choices (A, B, and C) are not the correct options for a monopoly.

A Monopoly Chooses to Supply the Market with a Quantity