Explain whether a monopoly that maximizes profit will also be maximizing revenue and production
What will be an ideal response?
Profit maximization is not the same thing as revenue maximization. To maximize revenue the firm would produce up to the point where marginal revenue is zero. Unless marginal cost is zero, this is a larger quantity than the quantity where marginal revenue equals marginal cost. Maximizing production could mean producing the physical maximum possible. This is likely to be far beyond the profit-maximizing level of output.
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An allocation of resources is technically efficient if:
a. it is impossible to increase the output of a particular good. b. it is possible to increase the output of all goods. c. it is impossible to increase the output of one good without cutting back on the production of something else. d. it is possible to increase the output of one good.
The demand schedule shows that the price of a good and quantity demanded are directly related to each other
a. True b. False Indicate whether the statement is true or false