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A single-price monopolist is currently producing an output level where P = $20, MR = $13, ATC = $15, and MC = $14. In order
A single-price monopolist is currently producing an output level whereP= $20,MR= $13,ATC= $15, andMC= $14. In order to maximize profits, this monopolist should
A)
decrease production and increase price.
B)
not change the output level, because the firm is currently at the profit-maximizing output level.
C)
increase production and reduce price.
D)
produce zero output.
E)
There is insufficient information to make a recommendation.
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