A profit-maximizing monopoly firm finds that its marginal costs have risen by $10 per unit.It will:

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In a monopoly, the firm has market power and faces a downward-sloping demand curve. When marginal costs increase, the firm will raise its price, but by less than the increase in marginal costs, to maintain its profit-maximizing quantity where marginal revenue equals marginal costs. This is because the monopoly can spread the increased cost over its output, affecting its optimal price and quantity balance.

A Profit-Maximizing Monopoly Firm Finds That Its Marginal Costs Have