A monopolist is producing a level of output at which price is $65,marginal revenue is $35,average total cost is $35,and marginal cost is $50.In order to maximize profit,the firm should

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The monopolist is currently producing at a level of output where marginal cost exceeds marginal revenue ($50 < $35), indicating that the firm is incurring losses on each additional unit produced. To maximize profit, the firm should reduce its output level until marginal revenue equals marginal cost. This will involve producing less and increasing the price above the current $65.

A Monopolist Is Producing a Level of Output at Which