The figure below shows the demand schedule and demand curve for a product produced by a single- price monopolist.
FIGURE 10- 1
-If a single- price monopolist's price equals marginal cost,the firm
A) will find it more profitable to produce a greater output.
B) is producing where MR = MC and thus is maximizing profits.
C) should definitely shut down.
D) could increase its profits by lowering output and raising price.
E) should maintain its current price because it is a price taker.
Correct Answer:
Verified
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