At a certain level of production,the marginal revenue and the marginal cost of a monopolist are $8 and $6,respectively.Which of the following statements is true in this context?

Question

Quizplus · Accepted Answer

The monopolist should continue to produce as long as the marginal revenue is greater than or equal to the marginal cost. Since in this case, the marginal revenue ($8) is greater than the marginal cost ($6), the monopolist should expand production to maximize profits. Therefore, option A is the correct answer.

At a Certain Level of Production,the Marginal Revenue and the Marginal