If a monopolist calculates its marginal revenue to be $15 and marginal cost to be $16, then the monopolist should:
A)lower its price.
B)increase its output.
C)leave its output and price unchanged.
D)decrease its output.

Question

Quizplus · Accepted Answer

If marginal cost is greater than marginal revenue, then the monopolist should decrease its output until marginal cost and marginal revenue are equal.

If a Monopolist Calculates Its Marginal Revenue to Be $15