00:03
Now in this we are going to share about the we are going to study about the maximizing of the monopolist profit.
00:11
Now a monopolist will maximize profit by producing output at a level where marginal revenue is equal to marginal cost.
00:19
Now marginal revenue is the additional revenue that is earned by selling an additional unit of output.
00:25
Whereas marginal cost is the additional cost incurred while producing an additional unit of output.
00:30
So at the level of output where marginal revenue is equal to marginal cost, that is additional revenue earned by selling an additional load of output is equal to the additional cost incurred by producing an additional load of output are equal to each other.
00:46
At that point, the monopolist will maximize the profit.
00:50
So that is the optimum level of output and optimum level of profit.
00:53
Now, if mr is greater than mc, so this means that marginal revenue is greater than marginal cost.
01:00
So as long as mr is greater than mc, it means that monopolist should keep on producing more and more output...