Suppose We Know That a Monopolist Is Maximizing Its Profits

question 222

Multiple Choice

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.

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