If a monopoly is attempting to maximize profits, which of the following should it attempt to do?
A)Maximize revenues.
B)Maximize profit per unit.
C)Select that output at which average total cost is at a minimum.
D)Set price equal to total cost.
E)None of the above.

Question

Quizplus · Accepted Answer

To maximize profits, a monopoly should set its output level where marginal cost equals marginal revenue, which is not explicitly stated in any of the provided options. Therefore, none of the given choices accurately describe how a monopoly maximizes profits.

If a Monopoly Is Attempting to Maximize Profits, Which of the Following