Assume a monopolist does not practice price discrimination. Which of the followi

Question

Assume a monopolist does not practice price discrimination. Which of the following must be true for a monopolist at an output level where price (P) is equal to marginal cost (MC)?

A. the monopolist is maximizing profit

B. the monopolist is not maximizing profit and should increase output

C. the monopolist is not maximizing profit and should decrease output

D. the monopolist is earning a positive profit

E. None of the above answer choices are correct.

For each condition noted below, indicate whether you think it would make it easier or harder for a monopolist to successfully practice price discrimination. For parts A?D, write either EASIER or HARDER as your answer.

A. The monopolist

Explanation / Answer

B. the monopolist is not maximizing profit and should increase outpu

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