-To maximize profits, the monopolist should produce at which
A) MR = MC.
B) MC intersects the demand curve.
C) total revenue is maximized.
D) total costs are minimized.

Question

-To maximize profits, the monopolist should produce at which
A) MR = MC. 
B) MC intersects the demand curve. 
C) total revenue is maximized. 
D) total costs are minimized.

Quizplus · Accepted Answer

A monopolist maximizes profits by producing at the quantity where marginal revenue (MR) equals marginal cost (MC), as this ensures that the cost of producing one more unit is exactly balanced by the revenue gained from selling that unit.

-To Maximize Profits, the Monopolist Should Produce at Which