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A monopolist is earning an economic profit. At the present output level, MR = $60 and MC = $46. Which of the following should the
A monopolist is earning an economic profit. At the present output level, MR = $60 and MC = $46. Which of the following should the firm do to increase the profit?
a. lower price and lower output
b. lower price and raise output
c. raise price and lower output
d. raise price and raise output
e. do not change price or output, the firm is already maximizing profit.
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