A monopolist maximizes profits by
A)producing an output level where marginal revenue equals marginal cost.
B)charging a price equal to marginal revenue and marginal cost.
C)charging a price where marginal cost equals average total cost.
D)Both a and b are correct.

Question

Quizplus · Accepted Answer

A monopolist maximizes profits by producing an output level where marginal revenue equals marginal cost. This is the point where the additional revenue from selling one more unit equals the additional cost of producing that unit.

A Monopolist Maximizes Profits by