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Suppose a single-price monopolist calculates that at its present output, marginal revenue is $2 and marginal cost is $1. If the price of the product
Suppose a single-price monopolist calculates that at its present output, marginal revenue is $2 and marginal cost is $1. If the price of the product is $3, the monopolist could maximize its profits by
a. lowering price and leaving output unchanged.
b. doing nothing.
c. lowering price and raising output.
d. shutting down.
e. raising price and leaving output unchanged.
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