Asked by
Kshitij Aggarwal
on Nov 05, 2024
Verified
Suppose we know that a monopolist is maximizing its profits. Which of the following is a correct inference? The monopolist has
A) maximized its total revenue.
B) set price equal to its average cost.
C) maximized the difference between marginal revenue and marginal cost.
D) equated marginal revenue and marginal cost.
Marginal Revenue
The additional income gained from selling one more unit of a product or service.
Marginal Cost
The supplementary expenditure arising from the creation of an additional unit of a good or service.
- Learn the fundamentals of increasing financial gains and reducing deficits for monopolies in the short and long duration.
Verified Answer
AZ
Learning Objectives
- Learn the fundamentals of increasing financial gains and reducing deficits for monopolies in the short and long duration.