A Monopolist Is Producing at an Output Level at Which

question 9

Multiple Choice

A monopolist is producing at an output level at which ATC = $5, P = $6, MC = $4, and MR = $3. We can conclude that

• A) economic profit could be increased by producing more.
• B) economic profit could be increased by producing less.
• C) economic profit cannot be increased.
• D) the firm is earning $10 in economic profits.

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