The MR = MC rule for profit maximization applies to monopolists, as well as to firms in perfect competition

Name: The MR = MC rule for profit maximization applies to monopolists, as well as to firms in perfect competition
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Question

Quizplus · Accepted Answer

Both monopolists and perfectly competitive firms use the MR = MC (marginal revenue equals marginal cost) rule to determine the profit-maximizing level of output, even though the market structures and the shape of the demand curves they face are different.

The MR = MC Rule for Profit Maximization Applies to Monopolists