The profit-maximizing quantity for a monopolist that faces an upward-sloping marginal cost curve will _____
A)occur at the minimum point of the marginal cost curve.
B)be less than the revenue-maximizing quantity.
C)be equal to the revenue-maximizing quantity.
D)occur along the unit elastic segment of the demand curve.
E)occur along the inelastic segment of the demand curve.

Question

Quizplus · Accepted Answer

A monopolist maximizes profit where marginal cost equals marginal revenue, which is typically less than the revenue-maximizing quantity where marginal revenue is zero.

The Profit-Maximizing Quantity for a Monopolist That Faces an Upward-Sloping