Where is a monopolist's profit maximized?
A)Where marginal revenue is zero.
B)Where average revenue equals average cost.
C)Where average revenue equals marginal cost.
D)Where marginal revenue equals marginal cost.
E)Where marginal profit is maximum.

Question

Quizplus · Accepted Answer

A monopolist's profit is maximized where marginal revenue (MR) equals marginal cost (MC), because at that point the marginal profit is zero, which means the total profit is maximized. The other options do not necessarily lead to profit maximization for a monopolist.

Where Is a Monopolist's Profit Maximized