To maximize profits,a monopolist produces the output level at which

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A monopolist's profit is maximized at the output level where the marginal cost equals marginal revenue. This is because at any output level where marginal revenue is greater than marginal cost, the monopolist can increase profit by producing more; and at any output level where marginal cost is greater than marginal revenue, the monopolist can increase profit by producing less. Therefore, the output level where marginal cost equals marginal revenue is the one that maximizes the monopolist's profit.

To Maximize Profits,a Monopolist Produces the Output Level at Which