Asked by Darby Fischer on Jun 22, 2024
Verified
A monopolist maximizes profit by producing an output level where marginal cost equals price.
Marginal Cost
The extra cost incurred when one more unit of a product or service is produced.
Profit
The financial gain made in a transaction, calculated as the difference between the revenue earned and the costs incurred.
- Ascertain the consequences of monopolistic production selections on enhancing revenue and profit.
Verified Answer
SL
Sonia LopezJun 28, 2024
Final Answer :
False
Explanation :
A monopolist maximizes profit by producing at an output level where marginal cost equals marginal revenue, not price.
Learning Objectives
- Ascertain the consequences of monopolistic production selections on enhancing revenue and profit.