For both the monopolist and the perfectly competitive firm , profit maximizing output occurs at the point where the

For both the monopolist and the perfectly competitive firm , profit maximizing output occurs at the point where the

Answer Details

Profit maximizing output for both the monopolist and the perfectly competitive firm occurs at the point where the marginal cost curve cuts the marginal revenue curve from below. In other words, the level of output where the additional cost of producing one more unit (marginal cost) is equal to the additional revenue earned from selling one more unit (marginal revenue). This is because at this point, the firm is producing the optimal quantity of goods that maximizes its profit.