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If a Monopoly Firm Sells to Competitive Distributors and the Distributors

Question 9

Multiple Choice

If a monopoly firm sells to competitive distributors and the distributors have a constant marginal cost of $3 and they are charging the profit- maximizing retail price of $9, what is wholesale price of the product?


A) $9
B) $6
C) $12
D) $3

Correct Answer:

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