A monopolist will continue to increase production until the marginal cost of the variable factor is
A)equal to zero.
B)equal to the marginal revenue of the firm's output.
C)less than the marginal revenue of the firm's output.
D)equal to the marginal revenue product of the factor.
E)greater than the marginal revenue of the firm's output.

Question

Quizplus · Accepted Answer

A monopolist will increase production until the marginal cost of the variable factor is equal to the marginal revenue product of the factor, which is the additional revenue generated from using one more unit of the factor.

A Monopolist Will Continue to Increase Production Until the Marginal