Recommend that the monopolist do to increase profits

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a. A monopolist finds that at its current level of output the marginal cost of production is $6, the average total cost is $6.95, the average variable cost is $6.75 and its marginal revenue is $6.45. What would you recommend that the monopolist do to increase profits? Explain your answer.

b. A monopolist determines that at the current level of output the marginal revenue is $3.00 and its marginal cost is $4. What should the monopolist do to increase profits? Explain your answer.

Reference no: EM132396940

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