To maximize profit, a monopolist will produce and sell a quantity such that for the last unit sold, marginal revenue equals marginal cost, and charges a price given by the demand curve at that output level.

a. True
b. False

True, the statement given is true because the profit maximization condition of the monopolist is “MR=MC” and it charges the price that is derived from the demand curve. For a monopolist, the demand curve and the marginal revenue (MR) curve is downward sloping. Therefore, the point where the marginal cost (MC) curve cuts the marginal revenue (MR) curve is the profit-maximizing point.

To maximize profit, a monopolist will produce and sell a quantity such that for the last unit sold, marginal revenue equals marginal cost, and charges a price given by the demand curve at that output level. a. True b. False

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To maximize profit, a monopolist will produce and sell a quantity such that for the last unit sold, marginal revenue equals marginal cost, and charges a price given by the demand curve at that output level.

a. True
b. False