Using a marginal revenue (MR)/marginal cost (MC) line graph, what is the point at which a monopoly will maximize its profits?
a. MR = MC
b. MR > MC
c. MC > MR
d. MC < MR
a. MR = MC
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.
Economics
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