If a monopolist's marginal cost equals its marginal revenue

A) output should be raised.
B) output should be reduced.
C) production is at its most efficient level.
D) profits are maximized or losses are minimizeD.

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Victoria Kimani · Accepted Answer

Final Answer : D, Explanation :  When a monopolist's marginal cost equals its marginal revenue, it indicates that the firm is maximizing its profits or minimizing its losses, as this is the point where the additional cost of producing one more unit equals the additional revenue gained from selling that unit.

If a monopolist's marginal cost equals its marginal revenue

A) output should be raised.
B) output should be reduced.
C) production is at its most efficient level.
D) profits are maximized or losses are minimizeD.

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Learning Objectives

Learning Objectives

Related questions

If a monopolist's marginal cost equals its marginal revenueA) output should be raised.B) output should be reduced.C) production is at its most efficient level.D) profits are maximized or losses are minimizeD.

Definitions

Learning Objectives

Learning Objectives

Related questions

If a monopolist's marginal cost equals its marginal revenue

A) output should be raised.
B) output should be reduced.
C) production is at its most efficient level.
D) profits are maximized or losses are minimizeD.