If a monopolist produces to a point at which marginal revenue is more than marginal cost then
A) the firm should increase output.
B) the firm should reduce output.
C) the firm is maximizing profits.
D) we do not know if the firm should increase or reduce without more information.

Question

Quizplus · Accepted Answer

When a monopolist produces to a point at which marginal revenue is more than marginal cost, it means that the firm can increase profits by producing more units. Therefore, the best choice is for the firm to increase its output.

If a Monopolist Produces to a Point at Which Marginal