Using the rule that focuses on the marginal approach to maximizing profits, a monopolist charges a price where the:
A) output sold is maximized.
B) ATC curve is minimized.
C) MR = MC.
D) MR = 0.

Question

Quizplus · Accepted Answer

The marginal approach to maximizing profits for a monopolist involves setting the price where marginal revenue (MR) equals marginal cost (MC). This ensures that the monopolist is producing at the quantity where the last unit produced has a marginal cost equal to its marginal revenue. This allows the monopolist to maximize profits by producing the optimal quantity at the highest possible price. Therefore, the correct answer is C, MR=MC.

Using the Rule That Focuses on the Marginal Approach to Maximizing