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A Monopoly Firm Engaged in International Trade Will

Question 36

Multiple Choice

A monopoly firm engaged in international trade will


A) equate marginal costs with the highest price the market will bear.
B) equate average to local costs.
C) equate marginal costs with foreign marginal revenues.
D) equate marginal costs with marginal revenues in both domestic and foreign markets.
E) equate marginal costs with the relative world prices.

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