A monopoly that maximizes profit is not maximising revenue and production as because revenue is highest when Marginal Revenue equals to 0.
As revenue is maximum when Marginal Revenue equals 0, a monopoly that maximizes profit is not also maximizing production.
Setting its supply at a point where Marginal Cost (MC) equals Marginal Revenue allows a monopoly to maximize profit (MR).
Revenue - costs equals profit.
Therefore, when a monopolist seeks to maximize profit, he is not maximizing revenue; rather, he is maximizing (Revenue - Cost), where revenue is maximized until MR equals zero and continues until MR is positive. When MR = 0, total revenue starts to rise and reaches its peak.
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