If a Monopolist Finds That Its Marginal Revenue Exceeds Its

question 21

Multiple Choice

If a monopolist finds that its marginal revenue exceeds its marginal costs at the current level of output,it should:

• A)do nothing;it has maximized profits.
• B)contract production until the difference between marginal revenues and marginal costs is larger.
• C)expand output until marginal revenue equals marginal costs.
• D)expand output until price equals marginal costs.

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