Suppose We Know That a Monopolist Is Maximising Its Profits

question 45

Multiple Choice

Suppose we know that a monopolist is maximising its profits. Which of the following is a correct inference? The monopolist has:

• A) maximised the difference between marginal revenue and marginal cost
• B) maximised its total revenue
• C) equated marginal revenue and marginal cost
• D) set price equal to its average cost