Problem
How should a monopoly choose its quantity of production to maximize profits? Explain why producing either less or more than the level of output at which marginal revenue equals marginal cost will reduce profits. Since a monopolist need not fear competition, what prevents it from raising its price as high as it wishes to make higher profits?
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.