If a Monopolist Is Producing a Quantity Where Marginal Revenue

question 52

Multiple Choice

If a monopolist is producing a quantity where marginal revenue is equal to $16 and the marginal cost is equal to $17,the monopolist should:

• A) increase production and lower the price to maximize profits.
• B) decrease production and increase the price to maximize profits.
• C) continue producing at the current price to maximize profits.
• D) increase production and increase the price to maximize profits.
• E) decrease production and decrease the price to maximize profits.

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