A monopoly firm is charging the maximum price the market will bear at a level of output where MC equals $10 and is increasing, MR equals $10, and average variable cost equals $9.To maximize profits, the firm should:
A) increase both output and price.
B) increase output but decrease the price.
C) decrease output and increase the price.
D) decrease both output and price.
E) not change either the output or the price.
Correct Answer:
Verified
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