The point of profit maximization for a monopolist is exemplified by
A) TR = TC.
B) MR = MC.
C) .
D) MR MC.

Question

The point of profit maximization for a monopolist is exemplified by
A) TR = TC. 
B) MR = MC. 
C) . 
D) MR > MC.

Quizplus · Accepted Answer

For a monopolist, profit is maximized where marginal revenue (MR) equals marginal cost (MC) because at this point, any additional units produced will increase costs more than revenue gained. Choices A and C are not necessarily indicative of profit maximization, and choice D would result in the monopolist producing beyond the point of profit maximization.

The Point of Profit Maximization for a Monopolist Is Exemplified