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If a Monopolist Must Lower the Price on All Units

Question 40

Multiple Choice

If a monopolist must lower the price on all units in order to sell an additional unit,


A) it is impossible for the monopolist to maximize profit
B) the monopolist will always lose profit when it increases quantity
C) the monopolist will always lose revenue when it increases quantity
D) price will always be greater than marginal revenue
E) price will always be less than marginal revenue

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