Answer :
The answer is A. At a certain level of production, the marginal revenue and marginal cost of a monopolist are $8 and $6, respectively. The monopolist should expand production.
Let's assume the initial cost of certain level of production be $10.
At a cost of $10, the marginal revenue of a monopolist is $6. in the event that the marginal cost of production is $8, the monopolist ought to keep the cost at same level to boost benefits.
For expanding the benefits the monopolist should increase the marginal revenue to $8 so the mr =mc.
Each firm observes the guideline of profit maximization. In this rule marginal cost is equal to the marginal revenue and the MR intersects the MC curve the profit will be the maximum at this level.
The marginal cost of production and marginal revenue are the financial measures which are utilized to decide how much result and the cost per unit of an item that will expand benefits.
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