If a Single-Price Monopolist's Price Equals Marginal Cost,the Firm

question 86

Multiple Choice

If a single-price monopolist's price equals marginal cost,the firm

• A)could increase its profits by lowering output and raising price.
• B)should maintain its current price because it is a price taker.
• C)will find it more profitable to produce a greater output.
• D)is producing where MR = MC and thus is maximizing profits.
• E)should definitely shut down.

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