If a single-price monopoly is presently producing an output at which marginal revenue is less than marginal cost,it can increase its profits by

Question

Quizplus · Accepted Answer

If marginal revenue is less than marginal cost, it means that the monopoly is producing too much output and not maximizing its profits. By reducing output and raising prices, the monopoly can increase its profits as it will sell fewer units at a higher price, which will bring marginal revenue closer to marginal cost.

If a Single-Price Monopoly Is Presently Producing an Output at Which