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A Monopolist Finds Out That If He Lowers His Price

Question 81

Multiple Choice

A monopolist finds out that if he lowers his price from $10 to $8, sales rise from 100 units to 115 units. Therefore, in this price range,

A) marginal revenue is positive.
B) marginal revenue is negative.
C) the price elasticity of demand is greater than one.
D) both a and c are correct.

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