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.
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.
举一反三
- Monopolists will maximize profit by producing at an output level where which of the following conditions exists（） A: Price = marginal revenue = marginal cost. B: Price = demand = marginal revenue = marginal cost. C: Marginal revenue = marginal cost ＜ price.
- A firm maximizes profit by operating at the level of output where A: average revenue equals average cost. B: average revenue equals average variable cost. C: total costs are minimized. D: marginal revenue equals marginal cost. E: marginal revenue exceeds marginal cost by the greatest amount.
- To maximize profit, the monopolist produces on the ________ portion of the demand curve where ________. A: elastic; price equals marginal cost B: elastic; marginal revenue equals marginal cost C: inelastic; price equals marginal revenue D: inelastic; marginal revenue equals marginal cost
- A perfectly competitive firm maximizes its profit by producing the output at which its marginal cost equals its ____ A: marginal revenue B: average total cost C: average variable cost. D: average fixed cost.
- A profit-maximizing monopolist will produce the level of output at which A: average revenue is equal to average total cost. B: average revenue is equal to marginal cost. C: marginal revenue is equal to marginal cost. D: total revenue is equal to opportunity cost.