The following table shows some costs and prices faced by a company that produces submarines.
Table 7.3
-In Table 7.3,a profit-maximizing monopolist will produce where:
A) Marginal cost equals marginal revenue.
B) Price equals marginal cost.
C) Total cost is minimized.
D) Total revenue is maximized.

Question

The following table shows some costs and prices faced by a company that produces submarines.
Table 7.3 
-In Table 7.3,a profit-maximizing monopolist will produce where:
A) Marginal cost equals marginal revenue. 
B) Price equals marginal cost. 
C) Total cost is minimized. 
D) Total revenue is maximized.

Quizplus · Accepted Answer

A profit-maximizing monopolist will produce at the quantity where marginal cost equals marginal revenue. This is the standard rule for maximizing profit in microeconomics, applicable to firms in various market structures, including monopolies.

The Following Table Shows Some Costs and Prices Faced by a Company