A Single-Price Monopolist Is Currently Producing an Output Level Where

Multiple Choice

A single-price monopolist is currently producing an output level where P = $320,MR = $200,AVC = $327,and MC = $200.In order to maximize profits,this firm should

A) increase production and reduce prices.
B) decrease production and increase prices.
C) not change its output level,because the firm is currently at its profit maximizing level.
D) produce zero output.
E) There is insufficient information to make a recommendation.