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A Monopolistic Firm

Question 9

Multiple Choice

A monopolistic firm


A) can sell as much as it wants for any price it determines in the market.
B) cannot sell additional quantity unless it raises the price on each unit.
C) chooses an output at which marginal revenue equals marginal cost.
D) cannot determine the price, which is determined by consumer demand.
E) will always earn a profit in the long run.

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