-The maximum profit for a single-price monopoly is found when the firm produces the level of output so that
A) marginal revenue equals marginal cost.
B) price equals marginal cost.
C) it can charge the highest possible price.
D) marginal revenue exceeds marginal cost by as much as possible.
E) total revenue equals total cost.

Question

-The maximum profit for a single-price monopoly is found when the firm produces the level of output so that
A) marginal revenue equals marginal cost. 
B) price equals marginal cost. 
C) it can charge the highest possible price. 
D) marginal revenue exceeds marginal cost by as much as possible. 
E) total revenue equals total cost.

Quizplus · Accepted Answer

The maximum profit for a single-price monopoly is achieved when the firm produces at a level where marginal revenue (MR) equals marginal cost (MC). This is a fundamental principle of profit maximization for firms in various market structures, including monopolies.

-The Maximum Profit for a Single-Price Monopoly Is Found When