Suppose that at the current output level the price received by a monopolist for its good is $10, marginal revenue is equal to $6, and marginal cost is $8.To maximise profit the monopolist should:
A)decrease output
B)increase output
C)keep output constant
D)we cannot say without more information

Question

Quizplus · Accepted Answer

The monopolist's marginal cost is greater than its marginal revenue, suggesting that producing more units would result in a loss. Therefore, the monopolist should decrease output to the point where marginal revenue equals marginal cost, which would be a quantity less than the current output level.

Suppose That at the Current Output Level the Price Received