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Ray Of Light [21]
3 years ago
8

How is profit maximization in a monopolistic firm different from that of a pure competitor?

History
1 answer:
Pavel [41]3 years ago
7 0
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.
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