Suppose That for a Monopoly Average Total Cost Is $3

Multiple Choice

Suppose that for a monopoly average total cost is $3.50, marginal cost is $3.00, and marginal revenue is $3.00 with a selling price of $4.00. To maximize profits, the monopoly should

A) change neither price nor output.
B) increase both output and price.
C) decrease both output and price.
D) increase output but decrease price.
E) decrease output but increase price.