The first-order conditions for a monopoly to maximize profits are:
A) dR(Q)/dQ = dC(Q)/dQ.
B) MR(Q) = MC(Q).
C) d  (Q)/dQ = 0.
D) All of the statements associated with this question are correct.

Question

Quizplus · Accepted Answer

All the statements represent the same condition for profit maximization in a monopoly, expressed in different mathematical notations. A) Marginal Revenue equals Marginal Cost, B) is another way to state this condition, and C) represents a derivative of profit with respect to quantity equals zero, which is the mathematical condition for maximizing profit.

The First-Order Conditions for a Monopoly to Maximize Profits Are