In maximizing economic profit, the monopolist will

Question

Quizplus · Accepted Answer

In order to maximize economic profit, the monopolist should set their output at the point where marginal revenue (MR) equals marginal cost (MC). This is because MR represents the additional revenue received from producing one more unit of output, while MC represents the additional cost of producing one more unit of output. By equating the two, the monopolist can maximize their profit by producing the optimal quantity of output at the corresponding price level.

In Maximizing Economic Profit, the Monopolist Will