A monopolist is able to maximize his profits when

A His output is maximum
B He charges high price
C His average cost is minimum
D His marginal cost is equal to marginal revenue

Correct Answer: His marginal cost is equal to marginal revenue

A monopolist is able to maximize his profits when his marginal cost is equal to marginal revenue. 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.
Bissoy MCQ
#Commerce #Economics

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