In order to maximize profits, a monopolist would increase output__ A) as long as the marginal revenue is greater than (or equal to) marginal cost B) until marginal revenue is equal to zero C) until total revenues are maximized D) average total costs are at the absolute minimum

In order to maximize profits, a monopolist would increase output__ A) as long as the marginal revenue is greater than (or equal to) marginal cost B) until marginal revenue is equal to zero C) until total revenues are maximized D) average total costs are at the absolute minimum

Survey Of Economics

10th Edition

ISBN:9781337111522

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter8: Monopoly

Section: Chapter Questions

Problem 15SQ

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Question

In order to maximize profits, a monopolist would increase output__

A) as long as the marginal revenue is greater than (or equal to) marginal cost

B) until marginal revenue is equal to zero

C) until total revenues are maximized

D) average total costs are at the absolute minimum

Definition Definition Total cost of producing a certain quantity of a good, divided by the quantity produced. It is the sum of all costs (fixed and variable) required to produce one unit of output.

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