At his current level of output, a monopolist has an MR of $10, an MC of $6, and an economic profit of zero. If the market demand curve is downward sloping and his or her marginal cost curve upward sloping, the monopolist
A. is producing his or her profit-maximizing level of output.
B. could increase his or her profit by increasing his or her output.
C. could increase his or her profit by increasing his or her price.
D. should exit the market if he or she has positive fixed cost.
Answer: B
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