If a Pure Monopolist Is Producing More Output Than the MR

question 111

Multiple Choice

If a pure monopolist is producing more output than the MR = MC output,

• A) the firm may, or may not, be maximizing profits.
• B) it will be in the interest of the firm, but not necessarily of society, to reduce output.
• C) it will be in the interest of the firm and society to increase output.
• D) it will be in the interest of the firm and society to reduce output.

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