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A monopolist will set its production at a level where marginal cost is equal to?
Wiki User
∙ 9y ago
A monopolist will set production at a level where marginal cost is equal to marginal revenue.
Wiki User
∙ 9y ago
MeGustaCulo
marginal revenue
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When can monopolist earn an economic profit?
A monopolist earns economic profit when the price charged is greater than their average total cost. To maximize profits, monopolies will produce at the output where marginal cost is equal to marginal revenue. To determine the price they will set, they choose the price on the demand curve that corresponds to this level of production.
What does profit maximizing quantity of output mean?
Its the level of production where marginal cost is equal to marginal revenue.
At the most profitable level of production a firms marginal cost will be the market price?
equal to
What is a level of production in which the marginal production decrease with new investment?
diminishing marginal returns
How marginal revenue and marginal cost can help set the most profitable output level?
A way to find the best level of output is to find the output level where marginal revenue is equal to marginal cost.
When can monopolist earn an economic profit?
A monopolist earns economic profit when the price charged is greater than their average total cost. To maximize profits, monopolies will produce at the output where marginal cost is equal to marginal revenue. To determine the price they will set, they choose the price on the demand curve that corresponds to this level of production.
How do you find a monopolist's profit maximising...?
The monopolist's profit maximizing level of output is found by equating its marginal revenue with its marginal cost, which is the same profit maximizing condition that a perfectly competitive firm uses to determine its equilibrium level of output. Indeed, the condition that marginal revenue equal marginal cost is used to determine the profit maximizing level of output of every firm, regardless of the market structure in which the firm is operating.
What does profit maximizing quantity of output mean?
Its the level of production where marginal cost is equal to marginal revenue.
At the most profitable level of production a firms marginal cost will be the market price?
equal to
What is a level of production in which the marginal production decrease with new investment?
diminishing marginal returns
What is a level of production in which the marginal production decreases with new investment?
diminishing marginal returns
How marginal revenue and marginal cost can help set the most profitable output level?
A way to find the best level of output is to find the output level where marginal revenue is equal to marginal cost.
The level of profit maximizing output is reached when marginal cost is?
equal to marginal revenue
What is the optimal level of pollution?
when marginal benefit is equal to marginal cost To be more specific: When the marginal damage cost of polluting is equal to the marginal abatement cost of polluting (or the marginal benefit of polluting, which is equivalent to the MAC)
When a firm produces a level of output on the production function?
Marginal physical product is zero
How do you determine the optimal level of advertising?
the optimal level of advertising expenditure for the firm is determined where the marginal revenue increase in costs of advertising are equal to the marginal increase in revenue
The equality of marginal revenue and marginal cost is essential for profit maximization in all market structures because if?
Marginal revenue and marginal cost are equal, any other output level will result in reduced profit.
