-In order to maximize its profit,a single-price monopoly produces the amount of output so that
A) P = MC.
B) MR = MC.
C) P = MC - MR.
D) P = MR.
E) P = ATC.

Question

-In order to maximize its profit,a single-price monopoly produces the amount of output so that
A) P = MC. 
B) MR = MC. 
C) P = MC - MR. 
D) P = MR. 
E) P = ATC.

Quizplus · Accepted Answer

A single-price monopoly maximizes its profit by producing the quantity of output where marginal revenue (MR) equals marginal cost (MC). This is because at this point, the cost of producing one more unit is exactly balanced by the revenue it generates, ensuring no additional unit could be produced without reducing profit.

-In Order to Maximize Its Profit,a Single-Price Monopoly Produces the Amount