If a Monopolist's Marginal Revenue Is $25 a Unit and Its

question 125

Multiple Choice

If a monopolist's marginal revenue is $25 a unit and its marginal cost is $25, then

• A)to maximize profit the firm should increase output.
• B)to maximize profit the firm should decrease output.
• C)to maximize profit the firm should continue to produce the output it is producing.
• D)Not enough information is given to say what the firm should do to maximize profit.

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