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The Monopolist and the Perfectly Competitive Firm Both Choose to Maximize

Question 75

Multiple Choice

The monopolist and the perfectly competitive firm both choose to maximize profits by choosing the level of output where:


A) MC equals MR and price is equal to minimum ATC.
B) the two types of firms make their profit-maximizing decision differently.
C) MC equals MR and price is equal to AR.
D) MC equals AR and price is equal to minimum ATC.

Correct Answer:

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