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An Oligopolist Cannot Use the MR = MC Rule to Find

Question 62

Multiple Choice

An oligopolist cannot use the MR = MC rule to find its equilibrium output level because


A) oligopolists do not face stable demand curves for their output
B) oligopolists do not try to maximize profits in the long run
C) it is too difficult to estimate marginal cost
D) the rule applies only in perfect competition
E) the minimum efficient scale exceeds total quantity demanded

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