If a monopolist's marginal revenue is $3.00 and its marginal cost is $4.50, it will increase its profits by:

A. reducing output and raising price.
B. reducing both output and price.
C. increasing both price and output.
D. raising price while keeping output unchanged.

Answer: A

Economics

You might also like to view...

An increase in income results in an outward shift of an indifference curve

Indicate whether the statement is true or false

Economics

Gross domestic product includes

a. all intermediate and final goods and services produced. b. the current production of final goods and services with a country's borders. c. exchanges of assets. d. the current production of final goods and services by a country's citizens. e. All of the above

Economics