A monopolist can boost up his revenue by?

A. adjusting both price and output upward
B. reducing total output to match price
C. increasing price
D. reducing price

Correct Answer:

Option B – reducing total output to match price

Explanation

A monopolist can determine its profit-maximizing price and quantity by analyzing the marginal revenue and marginal costs of producing an extra unit. If the marginal revenue exceeds the marginal cost, then the firm can increase profit by producing one more unit of output