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So Long as Price Exceeds Average Variable Cost,in the Model

Question 28

Multiple Choice

So long as price exceeds average variable cost,in the model of monopoly,the firm maximizes profits by producing where:


A) the difference between marginal revenue and marginal cost is maximized.
B) marginal revenue equals price.
C) the difference between price and marginal cost is maximized.
D) price equals marginal cost.
E) marginal cost equals marginal revenue.

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