Suppose a Monopolist Faces the Demand Curve and Cost Curves

Multiple Choice

Suppose a monopolist faces the demand curve and cost curves shown below. FIGURE 10-5
-Refer to Figure 10-5.Suppose this firm experiences an increase in the demand for its product.In the short run,this profit-maximizing monopolist will

A) increase price and output.
B) increase price and produce the same output.
C) increase price and reduce output.
D) neither raise price nor change output.
E) lower price and increase output.