8. If a monopolist is producing a quantity that generates MC MR. D) P > ATC. 10. A monopoly responds to a increase in demand by price and output. A) increasing; decreasing B) increasing; increasing C) decreasing, increasing D) decreasing; decreasing 11. To maximize profit, a monopoly firm determines its , and curves and produces an output where A) average fixed cost; demand; marginal revenue; MR = MC. B) demand; marginal revenue; marginal cost; MR = MC. C) demand, marginal revenue; marginal cost; MC