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A monopolist is able to maximize its profits by a. producing output where MR = MC and charging the price corresponding to that output level on the demand curve. b. setting output at MR = MC and setting price at the demand curve's highest point. c. producing maximum output where price is equal to its marginal cost. d. setting the price at the level that will maximize its per-unit profit.

Answer :

jepessoa

Answer:

A) producing output where MR = MC and charging the price corresponding to that output level on the demand curve.

Explanation:

In order for a monopolist to maximize their accounting profit, they should produce and sell an output level where marginal revenue (MR) = marginal cost (MC). When MR = MC, output should be at the equilibrium point.  

This profit maximizing rule applies to all businesses, including perfect competition markets and monopolistic competition.

anthougo

For a monopolist to maximize its profits, it b. sets output at MR = MC and sets prices at the demand curve's highest point.

The monopolist's MR or Marginal Revenue and the MC (marginal cost) must be equal to maximize profits. However, if he sets the selling price at the highest point, he achieves maximum profits.

Characteristics of a Monopolist

  • Dominates and controls the market.
  • There is a lack of competition.
  • There is a lack of substitute goods or services.
  • The monopolist can set high prices.
  • It decides the quantity to produce.

Thus, the monopolist can maximize its profits by choosing Option B.

Learn more about profit maximization for a monopolist here: https://brainly.com/question/7586794 and https://brainly.com/question/18721409

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