A profit-maximizing monopoly will produce that output for which
A)marginal revenue equals price.
B)average cost is minimized.
C)marginal cost is minimized.
D)marginal cost equals marginal revenue.

Question

Quizplus · Accepted Answer

A profit-maximizing monopoly will produce where marginal cost equals marginal revenue because this is where the additional cost of producing one more unit is just equal to the additional revenue from selling one more unit, allowing the firm to maximize profit.

A Profit-Maximizing Monopoly Will Produce That Output for Which