If a monopolist's marginal revenue is $3.00 and its marginal cost is $4.50, it will increase its profits by

Name: If a monopolist's marginal revenue is $3.00 and its marginal cost is $4.50, it will increase its profits by
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To maximize profits, a monopolist produces where marginal revenue (MR) equals marginal cost (MC). If MR < MC, reducing output will decrease costs more than revenues, increasing profits. Raising the price can compensate for the reduced output, maintaining or increasing revenue.

If a Monopolist's Marginal Revenue Is $3