Answer
b. P > MR and MR = MC
Work Step by Step
To maximize profits, the firm will produce until the marginal revenues equal the marginal costs. So, when MR = MC. If marginal cost becomes greater than marginal revenue, the firm would lose money by producing more units.
A monopoly doesn't have to equal the price of its items to the marginal revenue. It always prices them more, because otherwise, it would lose money. So, P > MR.
