Suppose That a Single-Price Monopolist Calculates That at Its Present

Multiple Choice

Suppose that a single-price monopolist calculates that at its present output,marginal revenue is $2 and marginal cost is $1.If the price of the product is $3,the monopolist could maximize its profits by

A) lowering price and raising output.
B) lowering price and leaving output unchanged.
C) raising price and leaving output unchanged.
D) doing nothing.
E) shutting down.