Suppose that a single- price monopolist knows the following information: $\begin{array} {| l |l |l |l |l |l |l |l | }
\hline \text { Price } & \text { Quantity } & \text { TR } & \text { MR } & \text { Fixed Cost} & \text { TC } & \text { ATC } & \text { MC }\\hline \$ 9.00&1500&&\$4.00&\$7000&&\$7.00&\$5.00\
\hline
\end{array}$
The monopolist could maximize its profits by

Question

Suppose that a single- price monopolist knows the following information: $\begin{array} {| l |l |l |l |l |l |l |l | }
\hline \text { Price } & \text { Quantity } & \text { TR } & \text { MR } & \text { Fixed Cost} & \text { TC } & \text { ATC } & \text { MC }\\hline \$ 9.00&1500&&\$4.00&\$7000&&\$7.00&\$5.00\
\hline 
\end{array}$
 The monopolist could maximize its profits by

Quizplus · Accepted Answer

The monopolist should raise the price and lower output because the marginal cost (\$5.00) is greater than the marginal revenue (\$4.00), indicating that producing the current quantity is not maximizing profit.

Suppose That a Single- Price Monopolist Knows the Following Information