All,except one,of the following statements regarding the profit-maximizing output of the monopolist are correct.Which is false?
A)At that output,the marginal cost will be equal to the price.
B)At that output,marginal profit is zero.
C)At that output,the difference between the total revenue and the total cost will be at a maximum.
D)At that output,marginal cost will equal marginal revenue.
E)At that output,average revenue will exceed marginal revenue.

Question

Quizplus · Accepted Answer

For a monopolist, the profit-maximizing output level is where marginal cost (MC) equals marginal revenue (MR), not where marginal cost equals price. Price is typically higher than marginal cost at the profit-maximizing quantity due to the monopolist's market power.

All,except One,of the Following Statements Regarding the Profit-Maximizing Output of the Monopolist