Suppose we know that a monopolist is maximizing its profits. Which of the following is a correct inference? the monopolist has?

A. maximized its total revenue
B. set price equal to its average cost
C. equated marginal revenue and marginal cost
D. maximized the difference between marginal revenue and marginal cost.

Correct Answer: equated marginal revenue and marginal cost ✔

Last Updated: June 18, 2019