If a monopolist chose to maximize social surplus, it would produce at an optimal Q where:
A) AR = MC.
B) MR = MC.
C) D = AC.
D) AR = AC.

Name: If a monopolist chose to maximize social surplus, it would produce at an optimal Q where: A) AR = MC. B) MR = MC. C) D = AC. D) AR = AC.
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Question

Quizplus · Accepted Answer

A monopolist maximizing social surplus would produce where the price (AR) equals marginal cost (MC), as this is the point where the value to consumers equals the cost of production, leading to allocative efficiency.

If a Monopolist Chose to Maximize Social Surplus, It Would