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Suppose a Firm Lowers Its Price to $10, Raising the Quantity

Question 23

Multiple Choice

Suppose a firm lowers its price to $10, raising the quantity sold from 4 to 5 units. If the marginal revenue of the fifth unit is $2, the firm must have lowered its price by:


A) $8.
B) $2.
C) $4.
D) $10.

Correct Answer:

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