What should a profit-maximising monopolist do if she is currently producing where MC

Question

What should a profit-maximising monopolist do if she is currently producing where MC < MR?
A)Increase output until MC = MR.
B)Decrease output until MC = MR.
C)Shut down in the long run.
D)Keep producing at this level.
E)Operate only in the short run.

Quizplus · Accepted Answer

A monopolist producing where MC < MR implies that the last unit produced adds more to total revenue than it does to total cost. By producing one more unit, the monopolist can increase profit. Increasing production up to the point where MC = MR will result in the highest profit. Therefore, the best choice is to increase output until MC = MR.

What Should a Profit-Maximising Monopolist Do If She Is Currently