Which of the Following Statements Is Correct

question 352

Multiple Choice

Which of the following statements is correct?

• A) If the monopolist's marginal revenue is greater than its marginal cost, the monopolist can increase profit by selling more units at a lower price per unit.
• B) If the monopolist's marginal revenue is greater than its marginal cost, the monopolist can increase profit by selling fewer units at a higher price per unit.
• C) When a monopolist produces where price equals the minimum of average total cost, it earns a positive economic profit.
• D) If the monopolist is earning a positive economic profit, it must be producing where MR = Md.