Which of the following statements is correct? A) If the monopolist\'s marginal r

Question

Which of the following statements is correct?

A) If the monopolist's marginal revenue is greater than its marginal cost, the monopolist can increase profit by selling more units at a lower price per unit.

B) If the monopolist's marginal revenue is greater than its marginal cost, the monopolist can increase profit by selling fewer units at a higher price per unit.

C) When a monopolist produces where price equals the minimum of average total cost, it earns a positive economic profit.

D) If the monopolist is earning a positive economic profit, it must be producing where MR = MC.

A) If the monopolist's marginal revenue is greater than its marginal cost, the monopolist can increase profit by selling more units at a lower price per unit.

Explanation / Answer

A) If the monopolist's marginal revenue is greater than its marginal cost, the monopolist can increase profit by selling more units at a lower price per unit.

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