Asked by
Hayden Schinderman
on Nov 05, 2024
Verified
A profit-maximizing monopolist will always raise output if marginal revenue exceeds marginal cost.
Profit-maximizing
The method of modifying manufacturing and selling tactics to obtain the maximum profit achievable.
Marginal Revenue
The extra revenue earned by selling an additional unit of a product or service.
Marginal Cost
Refers to the increase in total production cost that comes from making or producing one additional unit.
- Recognize the significance of marginal revenue and marginal cost in a monopolist’s decision-making process.
Verified Answer
CT
Learning Objectives
- Recognize the significance of marginal revenue and marginal cost in a monopolist’s decision-making process.