In the long run, a pure monopolist will maximize profits by producing that output at which marginal cost is equal to
A)average total cost.
B)marginal revenue.
C)average variable cost.
D)average cost.

Question

Quizplus · Accepted Answer

In the long run, a pure monopolist maximizes profits by producing at the output level where marginal cost (MC) is equal to marginal revenue (MR). This is the profit-maximizing condition for all firms, including monopolies.

In the Long Run, a Pure Monopolist Will Maximize Profits