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If a Monopolist Finds That Her Marginal Revenue Exceeds Her

Question 158

Multiple Choice

If a monopolist finds that her marginal revenue exceeds her marginal cost at the current level of output,she should


A) do nothing;she has maximized profits.
B) reduce production until the difference between marginal revenue and marginal cost is larger.
C) increase output until marginal revenue equals marginal cost.
D) increase output until price equals marginal cost.
E) raise her price.

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