Suppose That a Single- Price Monopolist Knows the Following Information

question 48

Multiple Choice

Suppose that a single- price monopolist knows the following information: $$\begin{array} { | l | l | l | l | l | l | l | l | } \hline \text { Price } & \text { Quantity } & \text { TR } & \text { MR } & \text { Fixed Cost } & \text { TC } & \text { ATC } & \text { MC } \\\hline \$ 9.00 & 1500 & & \$ 4.00 & \$ 7000 & & \$ 7.00 & \$ 5.00 \\\hline\end{array}$$
The monopolist could maximize its profits by

• A) raising price and lowering output.
• B) shutting down.
• C) lowering price and leaving output unchanged.
• D) staying at the current price and output.
• E) lowering price and increasing output.