A monopolist will maximize profits by:
A) setting his price as high as possible, while a perfectly competitive firm will take price from the market.
B) setting his price at the level that will maximize per-unit profit, while a perfectly competitive firm will minimize per-unit loss.
C) producing the output where marginal revenue equals marginal cost, just as a perfectly competitive firm will.
D) producing the output where price equals marginal cost, while a perfectly competitive firm will produce where marginal revenue equals marginal cost.

Question

Quizplus · Accepted Answer

A monopolist maximizes profits by producing the quantity of output where marginal revenue equals marginal cost, which is the same condition that a perfectly competitive firm uses to maximize profits.

A Monopolist Will Maximize Profits By