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Marginal Revenue Is Less Than Price for a Single- Price

Question 3

Multiple Choice

Marginal revenue is less than price for a single- price monopolist because the


A) monopolist has achieved economies of scale.
B) monopolist charges a price higher than the unit production cost.
C) firm must lower its price for all units if it wants to sell more of the product.
D) firm's output decisions do not affect the selling price.
E) monopolist must worry about how its price setting will lead to entry by other firms.

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