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If a Profit Maximizing Monopolist Faces a Linear Demand Curve

Question 2

Multiple Choice

If a profit maximizing monopolist faces a linear demand curve and has zero marginal cost, it will produce where demand elasticity is __________________ if it will produce at all.


A) Inelastic
B) Elastic
C) 1
D) Information is inadequate to answer the question

Correct Answer:

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