A monopoly will be maximizing profits if it is operating at the point where:
A) price is at a maximum.
B) average cost is at a minimum.
C) average cost is at a maximum.
D) marginal cost is at a minimum.
E) marginal revenue = marginal cost.

Question

Quizplus · Accepted Answer

A monopoly maximizes profits when it produces where marginal revenue equals marginal cost. This is because at this point, the last unit produced adds more to revenue than to cost, increasing the monopoly's overall profit.

A Monopoly Will Be Maximizing Profits If It Is Operating