If a monopolist is operating at the point where profits are maximized, which of the following statements must be true?

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The firm has achieved the highest possible total revenue.The price charged is the same as the average cost.Marginal revenue is equal to marginal cost.The difference between marginal revenue and marginal cost is at its peak.

Explanation

A monopolist maximizes profit by producing the quantity where marginal revenue equals marginal cost. This ensures that the additional revenue from selling one more unit matches the additional cost of producing it. Maximizing total revenue or setting price equal to average cost are not conditions for profit maximization. Also, maximizing the difference between marginal revenue and marginal cost is incorrect because profit maximization occurs when these two are equal, not when their difference is largest.