A monopolistically competitive firm and a monopoly each maximize profits when Use letters in alphabetical order to:.
A. marginal cost equal to total cost.
B. marginal revenue is equal to price.
C. marginal revenue is equal to marginal cost.
D. price is equal to marginal cost.

The correct option is C.

Explanation: In a monopoly or monopolistic market, an organization will maximize its overall profit by producing at the quantity where the marginal revenue will be equal to marginal cost, in doing this, the resulting equation can then be used in solving for the price of one product and the quantity that must be produced in order to maximize profits.

In actual practice though, the requirement that marginal revenue equals marginal cost is used in determining the level of output of every firm at which they will maximize their profit, not minding of the type of market structure in which they are operating.

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