Suppose Susan Owns a Business That Operates in a Market

Multiple Choice

Suppose Susan owns a business that operates in a market characterized by monopolistic competition.Susan's profit-maximizing price is $12,her profit-maximizing output is 900 units per week,and her profits are $1,800 per week.Susan decides that she needs more profits and therefore raises her price to $15.At the new price of $15:

A) profits will increase.
B) profits will remain at $1,800.
C) marginal revenue will be greater than marginal cost.
D) marginal revenue will be less than marginal cost.