A single- price monopolist is currently producing an output level where P = $320,MR = $200,AVC = $327,and MC = $200.In order to maximize profits,this firm should
A) decrease production and increase prices.
B) There is insufficient information to make a recommendation.
C) not change its output level,because the firm is currently at its profit maximizing level.
D) shut down.
E) increase production and reduce prices.
Correct Answer:
Verified
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