If at an output of 10 units a monopolist is earning a positi

If at an output of 10 units a monopolist is earning a positive profit, marginal revenue is $6, and marginal cost is $4, then the monopolist: Select one: a. should reduce output. b. should raise the price at the current output level. c. should lower the price at the current output level. d. is in equilibrium. e. should increase output.

Solution

If at an output of 10 units a monopolist is earning a positive profit, marginal revenue is $6, and marginal cost is $4, then the monopolist:

e. should increase output.

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