Asked by Jeremy Quinonez on Jun 01, 2024
Verified
A monopolist will always equate marginal revenue and marginal cost when maximizing profit.
Marginal Revenue
Marginal revenue is the additional income that an organization receives from selling one more unit of a good or service.
Marginal Cost
The additional expenditure incurred when one more unit of a good or service is produced.
- Acquire knowledge of the core principles underlying monopoly economics, including tactics for the maximization of profit.
Verified Answer
ZK
Zybrea KnightJun 03, 2024
Final Answer :
True
Explanation :
A monopolist maximizes profit by producing the quantity of output where marginal revenue (MR) equals marginal cost (MC), as this is the point where the additional revenue from selling one more unit equals the additional cost of producing that unit, ensuring no further profit can be made by increasing or decreasing production.
Learning Objectives
- Acquire knowledge of the core principles underlying monopoly economics, including tactics for the maximization of profit.