Which statement is TRUE?
A) If the monopolist's marginal revenue is greater than its marginal cost, the monopolist can increase profit by selling more units at a lower price per unit.
B) If the monopolist's marginal revenue is greater than its marginal cost, the monopolist can increase profit by selling fewer units at a higher price per unit.
C) When a monopolist produces where MR

Question

Which statement is TRUE?
A) If the monopolist's marginal revenue is greater than its marginal cost, the monopolist can increase profit by selling more units at a lower price per unit.
B) If the monopolist's marginal revenue is greater than its marginal cost, the monopolist can increase profit by selling fewer units at a higher price per unit.
C) When a monopolist produces where MR < MC it always earns a positive economic profit.
D) A monopolist is guaranteed monopoly profits by the government.

Quizplus · Accepted Answer

If a monopolist's marginal revenue is greater than its marginal cost, it can increase profit by producing and selling more units, even if it means lowering the price per unit, until MR equals MC.

Which Statement Is TRUE