If a single- price monopoly is presently producing an output at which marginal revenue is less than marginal cost, it can increase its profits by

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If a single-price monopoly is producing at a point where marginal revenue is less than marginal cost, they are not maximizing profits. In this situation, the monopolist can increase profits by reducing output and raising prices until marginal revenue equals marginal cost or increasing output until marginal revenue equals marginal cost. However, reducing output and raising prices is the best choice as they can increase profits without sacrificing the quantity sold.

If a Single- Price Monopoly Is Presently Producing an Output