The monopolist wants to maximize its profits or minimize its losses. Analyze the case and give a recommendation as to what the monopolist should do based on the possible recommendations provided below. Explain how you reached this recommendation and the reasons for it.

Possible Recommendations:

a. Increase production and reduce the price.
b. Decrease production and raise the price.
c. Shut down.
d. The monopoly is currently at the correct position.

CASE:

Price=3
Quantity of Output=1500
Total Cost=4500
Average Cost= (must find)
Marginal Revenue=2
Total Revenue= (must find)
Fixed Costs= (must find)
Marginal Cost=3