Which of the following statements is true?
A)For a monopoly firm, its marginal revenue curve and demand curve share two points in common.
B)A monopoly firm is a price taker; it takes the price government sets.
C)A firm that maximizes revenue automatically maximizes profit.
D)Maximizing revenues is the same as maximizing profits only when the firm has no variable costs.

Question

Quizplus · Accepted Answer

Maximizing revenues is the same as maximizing profits only when the firm has no variable costs because, in such a case, total revenue equals total profit.

Which of the Following Statements Is True