What is the determinant of the quantity of good... - SS2 Economics Price And Quantity Determination Under Monopoly Question
What is the determinant of the quantity of goods a monopoly produces?
A
Marginal cost
B
Average cost
C
Fixed cost
D
Total cost
correct option: a
(Marginal cost. A monopoly will produce and sell the quantity of goods where the marginal cost equals the marginal revenue, as this is the point where the company's profits are maximised)
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