If a monopolist is producing at a point at which marginal revenue is greater than marginal cost,it should:
A)continue producing at the current level.
B)raise its prices.
C)lower its prices.
D)increase the level of production.
E)decrease the level of production.

Question

Quizplus · Accepted Answer

When marginal revenue is greater than marginal cost, the monopolist can increase its profit by producing more, as the additional revenue from selling one more unit exceeds the additional cost of producing it.

If a Monopolist Is Producing at a Point at Which