Which statement is true for the single-price monopoly that is operating on the demand curve P = 75 - 5Q at the point where price is $37.50?
a. The firm should definitely not lower its price.
b. The firm should definitely lower its price.
c. If the marginal cost is 0, the firm should definitely raise its price.
d. None of the above can be stated with assurance.
Answer: a. The firm should definitely not lower its price.