Refer to the graph shown. At an output of a, the monopolist should:
A) not change output since profits are maximized.
B) reduce output to increase profits.
C) increase output to increase profits.
D) increase price to increase profits.

Question

Refer to the graph shown. At an output of a, the monopolist should: 
A) not change output since profits are maximized. 
B) reduce output to increase profits. 
C) increase output to increase profits. 
D) increase price to increase profits.

Quizplus · Accepted Answer

The Answer of Refer to the graph shown. At an output of a, the monopolist should: 
A) not change output since profits are maximized. 
B) reduce output to increase profits. 
C) increase output to increase profits. 
D) increase price to increase profits.

Refer to the Graph Shown