Assume that a profit maximizing monopolist is producing a quantity suc

Assume that a profit maximizing monopolist is producing a quantity such that marginal revenue exceeds marginal cost. We can conclude that the

A) firm is maximizing profit.
B) firm’s output is smaller than the profit maximizing quantity.
C) firm’s output is larger than the profit maximizing quantity.
D) firm’s output does not maximize profit, but we cannot conclude whether the output is too large or too small.

ANSWER

B