Share This Article:

Economic Definition of profit maximization monopoly. Defined.

Offline Version: PDF

Term profit maximization monopoly Definition: A monopoly is presumed to produce the quantity of output that maximizes economic profit--the difference between total revenue and total cost. This production decision can be analyzed directly with economic profit, by identifying the greatest difference between total revenue and total cost, or by the equality between marginal revenue and marginal cost.


« profit analysis monopoly | realism monopoly »


Alphabetical Reference to Over 2,000 Economic Terms