Asked by
Mercylyn Palomo
on Oct 27, 2024Verified
If a monopolist is producing a quantity where MC > MR,then profit:
A) is maximized.
B) is maximized only if MC = P.
C) can be increased by increasing production.
D) can be increased by decreasing production.
MC > MR
A condition where Marginal Cost (MC) is greater than Marginal Revenue (MR), suggesting that producing additional units of a good will not increase profits and may reduce them.
Profit
The financial gain realized when the revenue generated from a business activity exceeds the expenses, costs, and taxes involved in sustaining the activity.
- Understand the connection between marginal cost (MC), marginal revenue (MR), and price (P) in optimizing profits for monopolies.
Verified Answer
KG
Learning Objectives
- Understand the connection between marginal cost (MC), marginal revenue (MR), and price (P) in optimizing profits for monopolies.
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