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Many people believe that pure monopolies charge any price they want to without affecting sales. Instead, the output level for a profit-maximizing pure monopoly occurs where ____. rev: 05_15_2018 Multiple Choice marginal revenue equals marginal cost marginal revenue equals average cost marginal cost equals average revenue average total cost equals average revenue

Respuesta :

Answer:

The correct answer is marginal revenue equals marginal cost.

Explanation:

A monopoly is a form of market where there is only a single firm in the market. There is a restriction on the entry and exit of the firms. A monopoly firm is a price maker. It faces a downward-sloping demand curve. It can earn positive economic profits in both the long runs as well as the short run.  

A monopoly firm maximizes its profit at the point where the marginal revenue earned is equal to marginal cost incurred in the production process.

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