If a pure monopolist is producing more output than the MR = MC output,
A) the firm may, or may not, be maximizing profits.
B) it will be in the interest of the firm, but not necessarily of society, to reduce output.
C) it will be in the interest of the firm and society to increase output.
D) it will be in the interest of the firm and society to reduce output.

Question

Quizplus · Accepted Answer

If a monopolist produces more than the MR = MC output, it is not maximizing profits. Reducing output to where MR = MC will increase profits, though it may not align with societal interests.

If a Pure Monopolist Is Producing More Output Than the MR