Question

Jerry's Phone Service is a monopoly. To find the amount of phone service that this company will provide, Jerry finds the point at which marginal revenue equals _____.

-marginal cost
-fixed costs
-profits

Answer 1

Jerry will find the point of equilibrium. This is the point where marginal cost equals marginal revenue. This is the point that is Jerry produces anymore, it will start to cost him more than he makes. Thus, Jerry will stop providing new service at this point.

Answer 2

Answer: i think its profits

Explanation: because he has a monopoly hes going to want to maximize profits not just suddenly stop