Multiple Choice
Suppose a monopolist calculates that at present output and sales levels,marginal revenue is $1.00 and marginal cost is $2.00.He could maximize profits (or minimize losses) by:
A) decreasing price and increasing output.
B) increasing price and decreasing output.
C) decreasing price and leaving output unchanged.
D) decreasing output and leaving price unchanged.
Correct Answer:
Verified
Correct Answer:
Verified
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