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A Book Vendor Can Produce a Book at a Constant

Question 69

Multiple Choice

A book vendor can produce a book at a constant MC equal to zero, and its potential buyers have the following reservation prices: $55, $50, $45, $40, $35, $30, $25, $20, $15, $10, $5. What are the unrealized gains from trade if the monopolistic vendor chooses p = $25?


A) $65
B) $45
C) $155
D) $50

Correct Answer:

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