Suppose That a Monopolist Calculates That at Its Present Output

question 6

Multiple Choice

Suppose that a monopolist calculates that at its present output level, marginal revenue is $1.00 and marginal cost is $2.00. It could maximize profits or minimize losses by

• A)decreasing price and increasing output.
• B)increasing price and decreasing output.
• C)decreasing price and leaving output unchanged.
• D)decreasing output and leaving price unchanged.