If a monopolist is to profit maximize by producing at the output level where marginal revenue equals marginal cost, then it can be said that: A: Demand is perfectly inelastic :: B: Price is greater than average total cost :: C: Total revenue is maximized :: D: Marginal cost is constant

In a monopolistic market, a firm aims to maximize its profits by producing the quantity of goods where marginal revenue, the additional income from selling one more unit, equals marginal cost, the cost of producing that unit. This does not mean that total revenue is maximized or that demand is perfectly inelastic. Instead, it indicates that the firm can set a higher price than the average total cost, which allows it to earn economic profits. For example, if a monopolist produces 100 widgets and finds that the marginal revenue of the 100th widget is the same as the marginal cost of producing it, this is the optimal output level for maximizing profit, leading to a price above average total cost. Therefore, the correct statement is that price is greater than average total cost.