Suppose a monopoly is producing at the level of output where marginal revenue equals marginal cost.If the monopolist reduces output, it:
A.can charge a higher price.
B.will increase profits.
C.will decrease marginal revenue.
D.can charge a higher price and it will increase profits.

Question

Quizplus · Accepted Answer

The Answer of Suppose a monopoly is producing at the level of output where marginal revenue equals marginal cost.If the monopolist reduces output, it:
A.can charge a higher price.
B.will increase profits.
C.will decrease marginal revenue.
D.can charge a higher price and it will increase profits.

Suppose a Monopoly Is Producing at the Level of Output