On a graph of monopoly, the profit-maximizing output level is determined by noting where the ____ and ____ curves cross.
A)marginal revenue; demand
B)marginal cost; demand
C)marginal cost; average total cost
D)marginal revenue; marginal cost
E)average total cost; demand

Question

Quizplus · Accepted Answer

The profit-maximizing output level for a monopoly is determined by producing where marginal revenue (MR) equals marginal cost (MC). Therefore, the answer is D, where the marginal revenue and marginal cost curves cross.

On a Graph of Monopoly, the Profit-Maximizing Output Level Is