3240. A monopolist is able to maximize his profits when

His output is maximum
He charges high price
His average cost is minimum
His marginal cost is equal to marginal revenue
✅ The correct answer is D.
A monopolist is able to maximize his profits when his marginal cost is equal to marginal revenue. The profit-maximizing choice for the monopoly will be to produce at the quantity where marginal revenue is equal to marginal cost: that is, MR = MC.

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