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If a Monopoly Firm Sells to Competitive Distributors and the Distributors

Question 49

Multiple Choice

If a monopoly firm sells to competitive distributors and the distributors have a constant marginal cost of $2 and they are paying the profit- maximizing wholesale price of $8, what is the retail price of the product?


A) $10
B) $2
C) $6
D) $8

Correct Answer:

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