At its current production level, a monopolist's marginal revenue
Is $20 and its marginal cost is $10.Which of the following is
CORRECT?
A)The monopolist should produce and sell more output.
B)The monopolist should produce and sell less output.
C)The monopolist is maximizing its profits at its current level of output.
D)More information is required to decide if the firm needs to change its production.

Question

Quizplus · Accepted Answer

When marginal revenue (MR) is greater than marginal cost (MC), the monopolist can increase its profit by producing and selling more output.

At Its Current Production Level, a Monopolist's Marginal Revenue