A profit-maximizing monopolist sets
A)her price where MC = MR.
B)her output where MC = MR.
C)Both a and b are correct.
D)Neither a nor b is correct.

Name: A profit-maximizing monopolist sets A)her price where MC = MR. B)her output where MC = MR. C)Both a and b are correct. D)Neither a nor b is correct.
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Question

Quizplus · Accepted Answer

A profit-maximizing monopolist sets her output where marginal cost (MC) equals marginal revenue (MR), but the price is set above this point on the demand curve.

A Profit-Maximizing Monopolist Sets