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If a Single- Price Monopolist's Price Equals Marginal Cost, the Firm

Question 77

Multiple Choice

If a single- price monopolist's price equals marginal cost, the firm


A) will find it more profitable to produce a greater output.
B) should definitely shut down.
C) should maintain its current price because it is a price taker.
D) could increase its profits by lowering output and raising price.
E) is producing where MR = MC and thus is maximizing profits.

Correct Answer:

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