A monopolist maximizes profits by a. producing an output level where marginal revenue equals marginal cost. b. charging a price that is greater than marginal revenue. c. earning a profit of (P - MC) x Q. d. Both a and b are correct.

Respuesta :

A monopolist maximizes profits by a. producing an output level where marginal revenue equals marginal cost.

Who is a monopolist?

The monopolist is characterized by the following:

  • Market dominance and control
  • Lack of competition
  • Lack of substitute goods or services
  • Sets prices.

Thus, a monopolist maximizes profits by a. producing an output level where marginal revenue equals marginal cost.

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