To maximize profit, a pure monopolist must
A) maximize its total revenue.
B) maximize the difference between marginal revenue and marginal cost.
C) maximize the difference between total revenue and total cost.
D) produce where average total cost is at a minimum.

Question

Quizplus · Accepted Answer

A pure monopolist maximizes profit by producing the quantity where the difference between total revenue and total cost is the greatest, which is where marginal cost equals marginal revenue.

To Maximize Profit, a Pure Monopolist Must