If profits are maximized (or losses minimized), which of the following conditions is common to both unregulated monopoly and pure competition?
A)MC = P
B)MC = ATC
C)MR = MC
D)P = MR

Question

Quizplus · Accepted Answer

In both unregulated monopoly and pure competition, the condition for profit maximization (or loss minimization) is where marginal revenue (MR) equals marginal cost (MC). This is because, at this point, any additional unit produced would cost more than it would return in revenue, thus not contributing to further profits.

If Profits Are Maximized (Or Losses Minimized), Which of the Following