The monopolist will maximize profits at the output level for which:
A)price equals marginal cost.
B)price equals average total cost.
C)marginal revenue equals average total cost.
D)marginal revenue equals marginal cost.

Question

Quizplus · Accepted Answer

Following the Cost-Benefit Principle, all firms maximize their profit by choosing the level of output at which marginal revenue equals marginal cost.

The Monopolist Will Maximize Profits at the Output Level for Which