-Which of the following is ALWAYS true when a single-price monopolist maximizes its profit?
A) P = MC
B) P = MR
C) MR = MC
D) MC = ATC
E) P ATC

Question

-Which of the following is ALWAYS true when a single-price monopolist maximizes its profit?
A) P = MC 
B) P = MR 
C) MR = MC 
D) MC = ATC 
E) P > ATC

Quizplus · Accepted Answer

MR = MC is always true for a profit-maximizing monopolist, as this condition ensures that the firm is producing at a level where the cost of producing one more unit (MC) is exactly equal to the revenue gained from selling that one more unit (MR).

-Which of the Following Is ALWAYS True When a Single-Price