The condition of equilibrium for the monopolist is: A. MR = MC.

Here's why:

In economics, a monopolist – a single seller in a market – achieves equilibrium when its marginal cost (MC) is equal to its marginal revenue (MR).

Step 1: Understanding the terms
- Marginal Cost (MC) is the change in total cost that arises when the quantity produced changes by one unit.
- Marginal Revenue (MR) is the additional revenue that will be generated by increasing product sales by one unit.

Step 2: The monopolist's goal
A monopolist aims to maximize profits. This is achieved when the cost of producing an additional unit of output (MC) equals the revenue gained from selling that additional unit (MR).

Step 3: Achieving equilibrium
When MR = MC, the monopolist cannot increase profit by producing more or less, and so it is in equilibrium.

Therefore, the correct answer is A. MR = MC.

Question

The condition of equilibrium for the monopolist is: A. MR = MC.

Here's why:

In economics, a monopolist – a single seller in a market – achieves equilibrium when its marginal cost (MC) is equal to its marginal revenue (MR).

Step 1: Understanding the terms
- Marginal Cost (MC) is the change in total cost that arises when the quantity produced changes by one unit.
- Marginal Revenue (MR) is the additional revenue that will be generated by increasing product sales by one unit.

Step 2: The monopolist's goal
A monopolist aims to maximize profits. This is achieved when the cost of producing an additional unit of output (MC) equals the revenue gained from selling that additional unit (MR).

Step 3: Achieving equilibrium
When MR = MC, the monopolist cannot increase profit by producing more or less, and so it is in equilibrium.

Therefore, the correct answer is A. MR = MC.

Knowee AI · Accepted Answer

The condition of equilibrium for the monopolist is: A. MR = MC.

Here's why:

In economics, a monopolist – a single seller in a market – achieves equilibrium when its marginal cost (MC) is equal to its marginal revenue (MR).

Step 1: Understanding the terms
- Marginal Cost (MC) is the change in total cost that arises when the quantity produced changes by one unit.
- Marginal Revenue (MR) is the additional revenue that will be generated by increasing product sales by one unit.

Step 2: The monopolist's goal
A monopolist aims to maximize profits. This is achieved when the cost of producing an additional unit of output (MC) equals the revenue gained from selling that additional unit (MR).

Step 3: Achieving equilibrium
When MR = MC, the monopolist cannot increase profit by producing more or less, and so it is in equilibrium.

Therefore, the correct answer is A. MR = MC.

37.The condition of equilibrium for the monopolist is: A. MR = MC B. MC = AR C. MR = Price D. AC = AR

Question

Solution

Similar Questions

Upgrade your grade with Knowee