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At a Price of $10, the Marginal Revenue of a Monopolist

Question 28

Multiple Choice

At a price of $10, the marginal revenue of a monopolist is $6. If the marginal cost of production is $8, what should the monopolist do in order to maximize profits?


A) Increase its price.
B) Decrease its price.
C) Keep its price at the same level.
D) There is not enough information to solve.

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