When the demand curve is downward sloping, a monopolist will produce units of a good until the point where the marginal revenue of the last unit sold is equal to its

Question

Quizplus · Accepted Answer

A monopolist will maximize profit where marginal revenue (MR) equals marginal cost (MC). Since the demand curve is downward sloping, MR will always be less than the price of the good. Therefore, the monopolist will produce units until the MR of the last unit sold is equal to its MC.

When the Demand Curve Is Downward Sloping, a Monopolist Will