A monopolist will maximize profits byA) setting the price at the level that will maximize per-unit profit.B) producing the output where marginal revenue equals total cost and charging a price along the demand curve.C) selling at the price on the demand curve at the output rate where marginal revenue equals marginal cost.D) producing at the output rate where price equals marginal cost.

Question

A monopolist will maximize profits byA)  setting the price at the level that will maximize per-unit profit.B)  producing the output where marginal revenue equals total cost and charging a price along the demand curve.C)  selling at the price on the demand curve at the output rate where marginal revenue equals marginal cost.D)  producing at the output rate where price equals marginal cost.

Jessica Goolsby · Accepted Answer

Final Answer : C, Explanation :  A monopolist maximizes profits by producing the output where marginal revenue equals marginal cost and then charging the highest price consumers are willing to pay for that quantity, which is found on the demand curve.

Definitions

Learning Objectives

Learning Objectives

Related questions