Suppose a Monopolist Is Currently Producing at a Point Where

Multiple Choice

Suppose a monopolist is currently producing at a point where marginal revenue is $20 and marginal cost is $25. This monopolist should:

A) decrease output in order to increase profits.
B) increase output in order to increase profits.
C) make no change in output. It is maximizing profits at its current level of production.
D) advertise less. This would cut its costs and bring it to a profit maximizing position.