A monopolist maximizes profit at the quantity where the slope of its total revenue curve equals the slope of its total cost curve.

Name: A monopolist maximizes profit at the quantity where the slope of its total revenue curve equals the slope of its total cost curve.
Brand: Quizplus
Rating: 4.9 (42 reviews)

Question

Quizplus · Accepted Answer

This is true because the monopolist will choose the quantity where marginal revenue (which is the slope of the total revenue curve) equals marginal cost (which is the slope of the total cost curve), in order to maximize profit.

A Monopolist Maximizes Profit at the Quantity Where the Slope