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Consider a Price Ceiling Imposed on a Monopoly

Question 45

Multiple Choice

Consider a price ceiling imposed on a monopoly.For what quantities will the monopoly's new marginal revenue curve be horizontal at the ceiling price?


A) For quantities where the demand curve lies above the ceiling price.
B) For quantities where demand is elastic.
C) For quantities where marginal cost is rising.
D) Marginal revenue will be constant and equal to the ceiling price for all quantities.

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