-To maximize its profit,a single-price monopoly produces the amount of output so that its marginal revenue
A) equals zero.
B) equals its marginal cost.
C) exceeds its marginal cost but not necessarily by as much as possible.
D) is less than its marginal cost.
E) exceeds its marginal cost by as much as possible.

Question

-To maximize its profit,a single-price monopoly produces the amount of output so that its marginal revenue
A) equals zero. 
B) equals its marginal cost. 
C) exceeds its marginal cost but not necessarily by as much as possible. 
D) is less than its marginal cost. 
E) exceeds its marginal cost by as much as possible.

Quizplus · Accepted Answer

A single-price monopoly maximizes its profit by producing the quantity of output where its marginal revenue (MR) equals its marginal cost (MC). This is a fundamental principle of microeconomics that applies to all firms seeking to maximize profit, not just monopolies.

-To Maximize Its Profit,a Single-Price Monopoly Produces the Amount of Output