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The Small Country Monopolist's Free-Trade Equilibrium Occurs

Question 37

Multiple Choice

The small country monopolist's free-trade equilibrium occurs:


A) where MC = MR and where MC is greater than the world price.
B) at the same price as in autarky.
C) at a higher price than the autarkic price.
D) where MC = the world price.

Correct Answer:

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