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Demand Equation for a Good Produced by a

Question 74

Multiple Choice

Demand Equation for a Good Produced by a
Monopolistically Competitive Firm:
P = 10 - Q
Reference: Ref 6­3
(Demand Equation) If the firm has no fixed costs and variable
Costs of $2 per unit, what is the value of the firm's monopoly
Profits when it sets a price that maximizes its monopoly profits?


A) $7
B) $12
C) $15
D) $16

Correct Answer:

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