Suppose That a Single- Price Monopolist Knows the Following Information

question 32

Multiple Choice

Suppose that a single- price monopolist knows the following information: $$\begin{array} { | l | l | l | l | l | l | l | l | } \hline \text { Price } & \text { Quantity } & \text { TR } & \text { MR } & \text { Fixed Cost } & \text { TC } & \text { ATC } & \text { MC } \\\hline \$ 10.00 & 1500 & & \$ 7.00 & \$ 6000 & & \$ 5.00 & \$ 5.00 \\\hline\end{array}$$
The monopolist could maximize profits by

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

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