Currently, a monopolist's MR = $10 and its MC = $5 and it serves 10 consumers. An 11th consumer walks in. Should the company provide service to the additional customer?

A. No, MR > MC, so it should not provide service to the additional customer.
B. Yes, MR is equal to the number of customers, so it should provide service to the additional customer.
C. No, MC is less than the number of customers, so it should not provide service to the additional customer.
D. Yes, MR > MC, so it should provide service to the additional customer.


Answer: D

Economics

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