If a monopolist produces beyond the quantity where MC = MR:
A) the increase in revenue is less than the increase in cost.
B) total revenue is less than total cost.
C) the increase in revenue exceeds the increase in cost.
D) total revenue exceeds total cost.

Question

Quizplus · Accepted Answer

When a monopolist produces beyond the quantity where marginal cost (MC) equals marginal revenue (MR), the cost of producing an additional unit (MC) is greater than the revenue gained from selling that unit (MR), leading to a decrease in profit.

If a Monopolist Produces Beyond the Quantity Where MC =