An illegal drug dealer will maximize profit by providing and selling the quantity of drugs where

Question

Quizplus · Accepted Answer

A profit-maximizing illegal drug dealer will produce and sell the quantity where marginal revenue equals marginal cost. This is the point where the dealer earns the most profit. It is not about maximizing the number of consumers or the price, but rather about maximizing profit. Private property rights and social costs are not relevant in the context of illegal drug dealing.

An Illegal Drug Dealer Will Maximize Profit by Providing and Selling