-To maximize its profit,a perfectly competitive firm produces so that ________ and a single-price monopoly produces so that ________.
A) MR = MC; MR MC
B) MR MC; MR = MC
C) MR = MC; MR = MC
D) MR MC; MR MC
E) P = ATC; P = ATC

Question

-To maximize its profit,a perfectly competitive firm produces so that ________ and a single-price monopoly produces so that ________.
A) MR = MC; MR > MC 
B) MR > MC; MR = MC 
C) MR = MC; MR = MC 
D) MR > MC; MR > MC 
E) P = ATC; P = ATC

Quizplus · Accepted Answer

In both perfectly competitive firms and monopolies, profit maximization occurs where marginal revenue (MR) equals marginal cost (MC).

-To Maximize Its Profit,a Perfectly Competitive Firm Produces So That