Which of the following is true of the profit earned by a monopolist?
A)Profit is maximized where marginal cost equals marginal revenue.
B)Normal profit is ensured where price is equal to average total cost.
C)Normal profit is ensured where marginal cost exceeds average revenue.
D)Profit is maximized along the inelastic portion of the demand curve.
E)Economic profit is made where average variable cost equals marginal revenue.

Question

Which of the following is true of the profit earned by a monopolist?​
A)Profit is maximized where marginal cost equals marginal revenue.
B)Normal profit is ensured where price is equal to average total cost.
C)Normal profit is ensured where marginal cost exceeds average revenue.
D)Profit is maximized along the inelastic portion of the demand curve.
E)Economic profit is made where average variable cost equals marginal revenue.

Quizplus · Accepted Answer

The Answer of Which of the following is true of the profit earned by a monopolist?​
A)Profit is maximized where marginal cost equals marginal revenue.
B)Normal profit is ensured where price is equal to average total cost.
C)Normal profit is ensured where marginal cost exceeds average revenue.
D)Profit is maximized along the inelastic portion of the demand curve.
E)Economic profit is made where average variable cost equals marginal revenue.

Which of the Following Is True of the Profit Earned