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For a Monopoly with a Straight-Line Demand Curve, When Demand

Question 107

Multiple Choice

For a monopoly with a straight-line demand curve, when demand is


A) unit-elastic, marginal revenue reaches its maximum.
B) inelastic, marginal revenue is negative.
C) elastic, marginal revenue is positive and increasing.
D) elastic, marginal revenue is greater than demand.
E) perfectly inelastic, marginal revenue equals demand.

Correct Answer:

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