A monopolist will maximize profits by:
A. setting his price as high as possible, while a perfectly competitive firm will take price from the market.
B. setting his price at the level that will maximize per-unit profit, while a perfectly competitive firm will minimize per-unit loss.
C. producing the output where marginal revenue equals marginal cost, just as a perfectly competitive firm will.
D. producing the output where price equals marginal cost, while a perfectly competitive firm will produce where marginal revenue equals marginal cost.
Answer: C
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Answer the following statement true (T) or false (F)
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