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Suppose, at a moment in time, the price at which a monopolist is selling its output is $12 and the marginal revenue from the last
Suppose, at a moment in time, the price at which a monopolist is selling its output is $12 and the marginal revenue from the last unit sold is $9. Suppose further that the marginal cost of producing the last unit of output sold is $10. Everything else held constant, which of the following actions should the non-price discriminating, profit-maximizing monopolist take? Select one. Q A Decrease output and increase price. O B. Increase output and decrease price. O C. Shut down O D. Decrease output and decrease price. D'E. Increase output and increase price
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