What should a profit maximizing monopolist do if she is currently producing where MC

Name: What should a profit maximizing monopolist do if she is currently producing where MC < MR? A) Increase output until MC = MR. B) Decrease output until MC = MR. C) Shut down in the long run. D) Keep producing at this level. E) Operate only in the short run.
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Question

What should a profit maximizing monopolist do if she is currently producing where MC < MR?
A) Increase output until MC = MR.
B) Decrease output until MC = MR.
C) Shut down in the long run.
D) Keep producing at this level.
E) Operate only in the short run.

Quizplus · Accepted Answer

A profit-maximizing monopolist should increase output until marginal cost (MC) equals marginal revenue (MR) to maximize profits.

What Should a Profit Maximizing Monopolist Do If She Is