$$\begin{array} { c r }
\text { Output } & \text { Price } \
1 & \$ 30 \
2 & 28 \
3 & 26 \
4 & 24 \
5 & 22
\end{array}$$
-When marginal cost is greater than marginal revenue,the monopolist can increase its profit or minimize its loss by
A)expanding output.
B)reducing output.
C)lowering price.
D)producing where price = ATC.

Question

$$\begin{array} { c r } 
\text { Output } & \text { Price } \
1 & \$ 30 \
2 & 28 \
3 & 26 \
4 & 24 \
5 & 22
\end{array}$$
-When marginal cost is greater than marginal revenue,the monopolist can increase its profit or minimize its loss by
A)expanding output.
B)reducing output.
C)lowering price.
D)producing where price = ATC.

Quizplus · Accepted Answer

When marginal cost is greater than marginal revenue, reducing output can help a monopolist increase profit or minimize loss by avoiding the production of units that cost more to make than they bring in revenue.

Output Price 1$30228326424522\begin{array} { c r } \text { Output } & \text { Price } \\1 & \$ 30 \\2 & 28 \\3 & 26 \\4 & 24 \\5 & 22\end{array} Output 12345​ Price $3028262422​

$\begin{array} { c r } \text { Output } & \text { Price } \\1 & \$ 30 \\2 & 28 \\3 & 26 \\4 & 24 \\5 & 22\end{array}$