Thank you for visiting If a monopolist is producing a quantity where marginal revenue is equal to 125 and the marginal cost is equal to 125 the monopolist should. This page is designed to guide you through key points and clear explanations related to the topic at hand. We aim to make your learning experience smooth, insightful, and informative. Dive in and discover the answers you're looking for!
Answer :
Answer:
The correct answer is: Keep the production constant.
Explanation:
To begin with, a monopoly is a type of market that is characterized by the existence of just one seller in the industry, that commonly focuses in the sale of an unique product.
To continue, the monopolist will maximize its profits in the point where the marginal revenue equals the marginal cost so therefore that in the case presented the monopolist should keep the production constant and do not decrease or increase it, because that action will make it to loss profits.
In conclusion, the quantity that the monopolist is producing now must keep constant because that quantity maximize the profits.
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Rewritten by : Jeany
