If a Monopolist Is Producing the Quantity at Which Price

question 157

Multiple Choice

If a monopolist is producing the quantity at which price equals marginal cost, it should

• A) continue to produce this amount if it wants to maximize profits.
• B) reduce output if it wants to maximize profits.
• C) reduce price and keep output unchanged if it wants to maximize profits.
• D) increase output if it wants to maximize profits.

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