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.
It could be because the area was of water that both sides
needed to supply their troops. Another
reason was when the Allies launched Operation Torch, it would enable them to
get hold of the Mediterranean so their ships could have a place to dock. It also would persuade the French to help the
Allies.
