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

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

Question

Sheena Shantel Ezell · Accepted Answer

Final Answer : A, Explanation :  When marginal revenue (MR) is greater than marginal cost (MC), increasing output will add more to revenue than to costs, thereby increasing profit. This is a fundamental principle in economics for profit maximization.

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

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

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Learning Objectives

Learning Objectives

Related questions

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

Definitions

Learning Objectives

Learning Objectives

Related questions

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

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