if-a-monopolys-marginal-cost-is-5-and-its-marginal-revenue-is-5-what-should-the-

Question

If a monopoly's marginal cost is $5 and its marginal revenue is $5, what should the monopoly do to maximize profit?

Accepted Answer

Maintain current output level.

Answer

Increase output.

Answer

Increase price.

Answer

Decrease output.

If a monopoly's marginal cost is \$5 and its marginal revenue is \$5, what should the monopoly do to maximize profit?