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If at Its Current Production Level, a Dominant Firm's Marginal

Question 67

Multiple Choice

If at its current production level, a dominant firm's marginal cost is $5.50 and its residual marginal revenue is $5.50, which of the following statements is true?


A) It is maximizing profit.
B) It should increase production to maximize profit.
C) It should cut production in half to maximize profit.
D) It should decrease production to maximize profit.

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