Question

In: Economics

A monopoly will maximize its profits and minimize its losses when A. Price of the product...

A monopoly will maximize its profits and minimize its losses when

A. Price of the product = the Demand for the Product

B. MR=MC

C. MC=ATC

D. AVC = Marginal Revenue

Solutions

Expert Solution

Answer:- (B) MR = MC

Explanation:-

A monopoly can maximize it's profit or minimize it's lose at quantity where the marginal cost is equal to marginal revenue.

if firm produce where marginal cost is greater than marginal revenue then it's not realize profit so the firm should produce Quantity at which MR = MC

Rahul Sunny answered 2 years ago
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