In order to maximize profit,an unregulated monopolist _____

Question

Quizplus · Accepted Answer

An unregulated monopolist would aim to maximize profits by producing the level of output where marginal cost equals marginal revenue. At this level of output, the monopolist is able to charge a higher price than the marginal cost of production, resulting in excess profit. At any other level of output, either marginal cost exceeds marginal revenue or marginal revenue exceeds marginal cost, resulting in a lower profit or even loss. Therefore, the best choice is A.

In Order to Maximize Profit,an Unregulated Monopolist _____