Fill This Form To Receive Instant Help
Fill This Form To Receive Instant Help
Homework answers / question archive / Which condition determines the profit maximizing output for a monopolist? a
Which condition determines the profit maximizing output for a monopolist?
a. price equals average total cost
b. marginal revenue equals marginal cost
c. price equals average fixed cost
d. marginal revenue equals average fixed cost
The correct option is:
b. marginal revenue equals marginal cost
A profit-maximizing monopolist chooses to produce at a point where its marginal revenue is equal to the marginal cost and charges a corresponding point on the demand curve.
