-This figure applies to a:
A) pure competitor who is maximizing its profit in the short run.
B) monopolistic competitor who is minimizing its loss in the short run.
C) monopolistic competitor who is maximizing its profit in the long run.
D) monopolist who is maximizing its profit in either the short run or the long run.

Question

-This figure applies to a:
A) pure competitor who is maximizing its profit in the short run. 
B) monopolistic competitor who is minimizing its loss in the short run. 
C) monopolistic competitor who is maximizing its profit in the long run. 
D) monopolist who is maximizing its profit in either the short run or the long run.

Quizplus · Accepted Answer

A monopolist maximizes profit by producing at the quantity where marginal revenue equals marginal cost, regardless of the time frame (short or long run). This is a characteristic that applies to monopolists in general, as they have the market power to set prices above marginal cost.

-This Figure Applies to A