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If a Monopolist Finds That Its Marginal Revenue Exceeds Its

Question 70

Multiple Choice

If a monopolist finds that its marginal revenue exceeds its marginal costs at the current level of output,it should:


A) do nothing;it has maximized profits.
B) contract production until the difference between marginal revenues and marginal costs is larger.
C) expand output until marginal revenue equals marginal costs.
D) expand output until price equals marginal costs.

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