When marginal cost is greater than marginal revenue,the monopolist can increase its profit or minimize its loss by

A) expanding output.
B) reducing output.
C) lowering price.
D) producing where price = ATC.

Question

Jeffrey Vanco · Accepted Answer

Final Answer : B, Explanation :  When marginal cost is greater than marginal revenue, reducing output can help a monopolist increase profit or minimize loss by avoiding the production of units that cost more to make than they bring in revenue.

When marginal cost is greater than marginal revenue,the monopolist can increase its profit or minimize its loss by

A) expanding output.
B) reducing output.
C) lowering price.
D) producing where price = ATC.

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Learning Objectives

Learning Objectives

Related questions

When marginal cost is greater than marginal revenue,the monopolist can increase its profit or minimize its loss byA) expanding output.B) reducing output.C) lowering price.D) producing where price = ATC.

Definitions

Learning Objectives

Learning Objectives

Related questions

When marginal cost is greater than marginal revenue,the monopolist can increase its profit or minimize its loss by

A) expanding output.
B) reducing output.
C) lowering price.
D) producing where price = ATC.