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If, at an Output of 10 Units, a Monopoly Is

Question 85

Multiple Choice

If, at an output of 10 units, a monopoly is earning a positive profit (marginal revenue is $6 and marginal cost is $4) , then the monopoly


A) should raise the price at the current output level.
B) should reduce output.
C) is in equilibrium.
D) should increase output.
E) should reduce output before increasing it.

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