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Suppose You Observe That as Output in the Market Increases

Question 114

Multiple Choice

Suppose you observe that as output in the market increases, total revenue for the market declines. This would imply that


A) a monopoly would be unable to exercise market power in this market.
B) the demand for this product is not completely inelastic.
C) the market is not a monopoly.
D) any type of firm in this market would be a price-taker.
E) firms in this market have strong market power.

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