A Single-Price Monopolist Is Currently Producing an Output Level Where

Multiple Choice

A single-price monopolist is currently producing an output level where P = $320,MR = $260,ATC = $280,and MC = $200.In order to maximize profits,this monopolist should

A) produce zero output.
B) increase production and reduce price
C) decrease production and increase price.
D) not change the output level because the firm is currently at the profit-maximizing output level.
E) There is insufficient information to make a recommendation.