Many people believe that monopolies charge any price they want to without affecting sales. In fact, the output and sales level for a profit-maximizing monopoly is codetermined with price where

A) marginal cost = average revenue.
B) marginal revenue = average cost.
C) average total cost = average revenue.
D) marginal cost = marginal revenue.

Marginal Cost

The cost of producing one additional unit of a good or service, crucial for decision-making on output levels.

Marginal Revenue

The boost in income achieved by selling an additional unit of a good or service.

Monopolies

Monopolies exist when a single company or entity has exclusive control over a particular market or industry, potentially leading to higher prices and lower-quality products or services due to lack of competition.