A monopolist will stop production when MR equals MC.

Name: A monopolist will stop production when MR equals MC.
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Question

Quizplus · Accepted Answer

A monopolist, like any profit-maximizing firm, will produce up to the point where marginal revenue (MR) equals marginal cost (MC). This is because producing any additional units beyond this point would result in a decrease in profits as the additional cost would exceed the additional revenue earned. Therefore, a monopolist will stop production when MR=MC to maximize their profits.

A Monopolist Will Stop Production When MR Equals MC