After lowering her prices to bring in more customers, a small-town monopolist discovers her profits also decreased. Which of the following events can explain what happened? Which cannot?
a. The new price and ouput level are at a point where MRb. The loss in the revenue due to the price effect exceeds the gain in revenue due to the ouput effect.
c. With the increase in customers, MR is now greater than MC.
d. At lower price levels, demand is very elastic, so the price effect is minimized.