A monopolist's marginal cost curve shifts up,but the firm's demand curve remains the same and the firm does not shut down.Compared with the condition before the increase in marginal costs,the monopolist will _____ its price and _____ its level of production.

A) raise;decrease
B) not change;decrease
C) raise;increase
D) lower;increase

Marginal Cost

The expenditure involved in creating one more unit of a product or service.

Demand Curve

A diagram displaying the link between the value of an item and the quantity of that item that shoppers are eager and financially capable of purchasing at various cost points.

Monopolist

An individual or entity that has exclusive control over the production or sale of a product or service within a market, preventing competition.