Suppose Kris Kraf, a monopolist is producing the profit-maximizing level of output. At this level of output we know that:

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In a monopoly, the profit-maximizing level of output occurs where marginal revenue equals marginal cost. However, marginal social benefit, which is reflected in the price consumers are willing to pay, typically exceeds marginal revenue because monopolists restrict output to raise prices.

Suppose Kris Kraf, a Monopolist Is Producing the Profit-Maximizing Level