Exhibit 9-7 Monopolist
?
According to the information provided in Exhibit 9-7, if the Rudd Ice Company is a monopoly and is currently charging a price of $6, what would you advise Rudd to do?
A. Stay where he is currently operating because he is charging the profit maximizing price.
B. Increase price and decrease output.
C. Decrease price and increase output.
D. Increase output and hold price constant.
Answer: B
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