Answer:
The monopolist is not maximizing- profits.
Step-by-step explanation:
A monopolist is producing 75 units of a product.
The average revenue at this point is $10 per unit.
The marginal revenue is $5 per unit.
The marginal cost is $6 per unit.
The average total cost is given as $5 per unit.
The profit maximizing level of output for a monopolist is the point where the marginal cost incurred is equal to the marginal revenue earned.
Here, the marginal cost is higher than the marginal revenue. The producer should decrease output till the point where marginal cost is equal to marginal revenue to maximize profit.