A Monopolist Earns $1,000,000 Economic Profit in the Short Run

Multiple Choice

A monopolist earns $1,000,000 economic profit in the short run producing 25,000 units of a good. The marginal revenue of the 25,000th unit is $23 and the marginal cost is $30. What should the monopolist do?

A) raise price and produce less than 25,000 units
B) lower price and produce less than 25,000 units
C) raise price and produce more than 25,000 units
D) lower price and produce more than 25,000 units
E) produce more than 25,000 units at the same price