A profit-maximizing monopolist will maximize both total revenue and economic profit at the same price when _____,given that there are no fixed costs.
A)the marginal cost curve is upward-sloping
B)demand is perfectly inelastic
C)marginal cost is zero
D)marginal revenue is an increasing function of quantity produced

Question

Quizplus · Accepted Answer

When marginal cost is zero, the monopolist maximizes both total revenue and economic profit at the same price because producing additional units incurs no additional cost, allowing the firm to maximize profits by selling as much as the market will bear at the profit-maximizing price.

A Profit-Maximizing Monopolist Will Maximize Both Total Revenue and Economic