A profit-maximizing monopolist,if producing at all,chooses a level of output where:
A) total revenue is maximized.
B) total cost is minimized.
C) average total cost is minimized.
D) marginal revenue equals marginal cost.

Question

Quizplus · Accepted Answer

A profit-maximizing monopolist produces at the level of output where its marginal revenue equals its marginal cost. This is because any deviation from this level of output will either reduce revenue or increase costs, thereby reducing profits. Therefore, the correct choice is D.

A Profit-Maximizing Monopolist,if Producing at All,chooses a Level of Output