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An Increase in Demand for a Monopolist Will Cause The

Question 22

Multiple Choice

An increase in demand for a monopolist will cause the:


A) profit-maximizing price to decrease when marginal cost decreases as quantity increases.
B) profit-maximizing price to increase when marginal cost decreases as quantity increases.
C) profit-maximizing price to decrease when marginal cost increases as quantity increases.
D) profit-maximizing price to stay constant regardless of the shape of the marginal cost curve.

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