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Diamonds Are Sold by a Monopoly Firm That Maximizes Profits

Question 27

Multiple Choice

Diamonds are sold by a monopoly firm that maximizes profits.It then follows that:


A) the marginal social benefit of diamonds exceeds its marginal social cost.
B) the marginal social cost of diamonds exceeds its marginal social benefit.
C) the price of diamonds equals its marginal social cost.
D) the price of diamonds exceeds its marginal social benefit.

Correct Answer:

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