Question

When the slope of the total revenue curve is equal to the slope of the total cost curve a) monopoly profit is maximized. B) marginal revenue equals marginal cost. C) the marginal cost curve intersects the total average cost curve. D) the total cost curve is at its minimum.

Answer 1

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SLOPE of marginal revenue curve is less than slope of marginal cost curve

• They have the same constant, and the marginal revenue curve is twice as steep as the demand curve.
• The coefficient on Q is twice as large in the marginal