When will a monopolist choose to increase output
A)when market price increases
B)when marginal revenue is positive
C)when marginal revenue exceeds marginal cost at the present level of output
D)when marginal revenue is less than marginal cost at the present level of output

Question

Quizplus · Accepted Answer

A monopolist will choose to increase output when marginal revenue exceeds marginal cost at the present level of output. This means that for each additional unit produced, the revenue gained from selling it is greater than the cost of producing it. This results in a net gain in profit for the monopolist.

When Will a Monopolist Choose to Increase Output