A Monopoly Finds That, at Its Present Level of Output

Multiple Choice

A monopoly finds that, at its present level of output and sales, marginal revenue equals $5 and marginal cost is $4.10.Which of the following will maximize profits?

A) Leave price and output unchanged.
B) Increase price and leave output unchanged.
C) Increase price and decrease output.
D) Decrease price and increase output.
E) Decrease price and leave output unchanged.