Suppose a Monopolist Is Producing a Level of Output Such

question 96

Multiple Choice

Suppose a monopolist is producing a level of output such that MR > MC.Which of the following best describes what will happen as the firm moves to its profit-maximizing equilibrium?

• A)Marginal revenue will rise and marginal cost will fall.
• B)Marginal cost and marginal revenue will both rise.
• C)Marginal revenue will fall and marginal cost will rise.
• D)Marginal cost and marginal revenue will both fall.

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