For a competitive firm,the level of output that maximizes profits is where marginal revenue ________ marginal cost,and for a monopolist it is where marginal revenue ________ marginal cost.
A) is equal to; is greater than
B) is equal to; is less than
C) is equal to; is equal to
D) is greater than; is equal to

Question

Quizplus · Accepted Answer

For both a competitive firm and a monopolist, the level of output that maximizes profits is where marginal revenue is equal to marginal cost. This is a fundamental principle of profit maximization in economics.

For a Competitive Firm,the Level of Output That Maximizes Profits