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Assuming That Firms Maximize Profits, How Will the Price and Output

Question 149

Multiple Choice

Assuming that firms maximize profits, how will the price and output policy of an unregulated monopolist compare with ideal market efficiency?


A) The output of the monopolist will be too large and the price too high.
B) The output of the monopolist will be too large and the price too low.
C) The output of the monopolist will be too small and the price too high.
D) The output of the monopolist will be too small and the price too low.

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