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James Operates a Monopoly Hiking Gear Store in the Woodland

Question 155

Multiple Choice

James operates a monopoly hiking gear store in the woodland trails near his home in the Ozarks. He is currently producing at an output level where marginal revenue equals marginal cost. If James were to reduce his output, he:


A) can charge a higher price.
B) will increase profits.
C) will decrease marginal revenue.
D) can't change the price because it is a price-taker.

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