When a monopoly is maximizing its profits, A)MR MC. B)MR dMC/dQ. D)dMR/dQ

Name: When a monopoly is maximizing its profits, A)MR > MC. B)MR dMC/dQ. D)dMR/dQ < dMC/dQ.
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Question

When a monopoly is maximizing its profits, A)MR > MC. B)MR < MC. C)dMR/dQ > dMC/dQ. D)dMR/dQ < dMC/dQ.

Quizplus · Accepted Answer

When a monopoly is maximizing its profits, it produces where marginal revenue (MR) equals marginal cost (MC), and at this point, the slope of the MR curve (dMR/dQ) is less than the slope of the MC curve (dMC/dQ), indicating that MR is decreasing faster than MC as output increases.

When a Monopoly Is Maximizing Its Profits