The profit-maximizing condition for a monopoly firm is ________.

MC=MR=P

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MC=MR<P

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MC=AR=P

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MC=AR > P

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Solution

The correct option is B
MC=MR<P

The profit-maximizing condition for a monopoly firm is P >MC = MR. This can also be expressed as MC=MR < P.

Suggest Corrections

Similar questions

See the MC and MR curves for a firm given below and identify the profit-maximizing level of output.

M R

M C

M R > M C

M R = M C

M R > M C

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