Marginal revenue equals marginal cost is the profit maximizing rule: Question 17

ID: 1213101 • Letter: M

Question

Marginal revenue equals marginal cost is the profit maximizing rule:

Question 17 options:

followed by a monopoly but not by a perfectly competitive firm.

followed by a perfectly competitive firm but not by a monopoly.

followed by all types of firms.

not followed by a monopoly because it would reduce economic profit to zero.

followed by a monopoly but not by a perfectly competitive firm.

followed by a perfectly competitive firm but not by a monopoly.

followed by all types of firms.

not followed by a monopoly because it would reduce economic profit to zero.

followed by a monopoly but not by a perfectly competitive firm.

In a perfect competition, P=MC is the profit maximizing condition.