If a monopolist's marginal revenue is $3.00 and its marginal cost is $4.00, it will increase its profits by: A. reducing output and raising price B. Reducing both output and price C. Increasing both output and price D. Raising price while keeping output unchanged

Principles of Economics 2e
2nd Edition
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
Chapter9: Monopoly
Section: Chapter Questions
Problem 33P: Draw a monopolists demand curve, marginal revenue, and marginal cost curves. Identify the...
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If a monopolist's marginal revenue is $3.00 and its marginal cost is $4.00, it will increase its profits by:

A. reducing output and raising price

B. Reducing both output and price

C. Increasing both output and price

D. Raising price while keeping output unchanged

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