Latoya R.
asked • 12/15/19True or False? Monopolists (a single firm industry) maximize profits the exact same way as perfect competitors, by producing a quantity that equates their marginal revenue with their marginal cost.
True or False?
Monopolists (a single firm industry) maximize profits the exact same way as perfect competitors, by producing a quantity that equates their marginal revenue with their marginal cost.
a. True
b. False
More
1 Expert Answer
Lenny D. answered • 12/16/19
Tutor
4.8
(563)
Former Tufts Economics Professor and Wall Street Economist
Both types of firm equate MR and MC however, Competitive firms have P=MR while monopolist have P>MR so P>MC. The answer is true. Feel free to reach out if you want to schedule a review before your exam/
Lenny
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Charles W.
12/16/19