Pure economic profit must be at a maximum for a monopolist who has a level of output in which total revenue is at a maximum.

Name: Pure economic profit must be at a maximum for a monopolist who has a level of output in which total revenue is at a maximum.
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Question

Quizplus · Accepted Answer

A monopolist maximizes profit where marginal cost equals marginal revenue, not where total revenue is maximized. Total revenue maximization does not account for costs, so it does not necessarily lead to maximum economic profit.

Pure Economic Profit Must Be at a Maximum for a Monopolist