Monopoly - The profit-maximizing monopolist

4 important questions on Monopoly - The profit-maximizing monopolist

The slope of the total revenue curve is the definition of:

Marginal revenue, given by MRq = dTR/dQ

The optimality condition for a monopolist means that:

A monopolist maximizes profits by choosing the level of output where marginal revenue equals marginal cost (MCq = MRq)

The monopolist's fixed costs are irrelevant to the determination of the profit-maximizing output level and price, because:

Fixed cost has no bearing on the gains and losses that occur when output changes.
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The shut-down condition for a monopolist is that:

Whenever average revenue (the price value on the demand curve) is lower than average variable cost for every level of output, the monopolist does best to cease production in the short-run.

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