Question on: SS2 Economics - Price And Quantity Determination Under Monopoly
What is the determinant of the quantity of goods a monopoly produces?
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A
Marginal cost
B
Average cost
C
Fixed cost
Â
D
Total cost
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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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