For a profit-maximizing monopolist
A) P MC.
B) P = MC.
C) P = MR.
D) P = ATC.

Name: For a profit-maximizing monopolist A) P > MC. B) P = MC. C) P = MR. D) P = ATC.
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Question

For a profit-maximizing monopolist
A) P > MC.
B) P = MC.
C) P = MR.
D) P = ATC.

Quizplus · Accepted Answer

A profit-maximizing monopolist produces where marginal revenue (MR) equals marginal cost (MC), as long as the price it charges (P) is greater than marginal cost (P>MC). This allows them to charge a higher price than the cost of producing an additional unit and earn economic profits. Therefore, option A is the correct answer.

For a Profit-Maximizing Monopolist