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 (MC) of $5.00 is greater than the marginal revenue (MR) of $4.00, indicating that producing additional units decreases profit.

Suppose That a Single- Price Monopolist Knows the Following Information