Suppose that at the current level of production, the price of a monopolist’s product is equal to $15 per unit. Marginal revenue is equal to $10 per unit, and marginal cost is equal to $15 per unit. This monopoly
a) has maximized profit and should keep production the same.
b) can increase its profit by producing and selling more units of its product.
c) can increase its profit by producing and selling fewer units of its product.
d) more information is needed to answer this question.
Ans: c) can increase its profit by producing and selling fewer units of its product.
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