Suppose When a Monopolist Produces 50 Units Its Average Revenue

Multiple Choice

Suppose when a monopolist produces 50 units its average revenue is $8 per unit, its marginal revenue is $4 per unit, its marginal cost is $4 per unit, and its average total cost is $3 per unit. What can we conclude about this monopolist?

A) The monopolist is currently maximizing profits, and its total profits are $200.
B) The monopolist is currently maximizing profits, and its total profits are $250.
C) The monopolist is not currently maximizing its profits; it should produce more units and charge a lower price to maximize profit.
D) The monopolist is not currently maximizing its profits; it should produce fewer units and charger a higher price to maximize profit.