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Based on the Rational Rule for Sellers, How Does a Manager

Question 77

Multiple Choice

Based on the Rational Rule for Sellers, how does a manager set price and quantity? If the company has no market power, the marginal cost _____ price. If the company has market power, the marginal cost is _____ than price.


A) is less than; greater
B) is greater than; less
C) equals; less
D) equals; greater

Correct Answer:

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