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A Firm with Monopoly Power Is Able to Set a Markup

Question 22

Multiple Choice

A firm with monopoly power is able to set a markup price that is:


A) lower than prices on similar goods sold by competitive firms.
B) the same as the prices on similar goods sold by competitive firms.
C) higher than prices on similar goods sold by competitive firms.
D) the maximum price all market participants will pay for similar goods.

Correct Answer:

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