By adhering to the MC = MR principle, a monopoly will assure itself:
A) either maximum profits or minimum losses.
B) large profits.
C) economic profits.
D) no losses.

Question

Quizplus · Accepted Answer

By adhering to the MC = MR principle, a monopoly will produce output where marginal cost (MC) equals marginal revenue (MR). At this point, the monopoly will produce the level of output that maximizes its profits or minimizes its losses. Therefore, it will either earn maximum profits or incur minimum losses.

By Adhering to the MC = MR Principle, a Monopoly