Answer to Question #49402 in Microeconomics for susie

Question #49402
If a profit maximizing monopolist is producing such that marginal cost is $10 and its marginal revenue is $4, it will increase its profits by: reducing price and increasing output increasing price and reducing output reducing both price and output increasing both price and output raising price while keeping output unchanged
1
Expert's answer
2014-11-28T14:48:09-0500
If a profit maximizing monopolist is producing such that marginal cost is $10 and its marginal revenue is $4, it will increase its profits by increasing price and reducing output to reach the point, where MR = MC.
So, the right answer is b) increasing price and reducing output.

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