Unlike a perfectly competitive firm, a monopoly maximizes profits at the quantity that equates marginal revenue to marginal cost.

Question

Quizplus · Accepted Answer

Both a perfectly competitive firm and a monopoly maximize profits at the quantity where marginal revenue equals marginal cost; the difference lies in how the marginal revenue curve behaves and the price they can charge at the equilibrium quantity.

Unlike a Perfectly Competitive Firm, a Monopoly Maximizes Profits at the Quantity