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A Monopolist Faces a Demand Function Defined as Q =

Question 36

Multiple Choice

A monopolist faces a demand function defined as Q = 80 - 4P. The monopolist's marginal cost is equal to $10 at all levels of output. What price should the firm charge in order to maximize profits?


A) 2
B) 5
C) 10
D) 20

Correct Answer:

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