When marginal revenue is greater than marginal cost,the monopolist can increase its profit or minimize its loss by
A)expanding output.
B)reducing output.
C)raising price.
D)producing where price = ATC.

Question

Quizplus · Accepted Answer

When marginal revenue (MR) is greater than marginal cost (MC), increasing output will add more to revenue than to costs, thereby increasing profit. This is a fundamental principle in economics for profit maximization.

When Marginal Revenue Is Greater Than Marginal Cost,the Monopolist Can