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The Monopolist's Marginal Revenue Curve Lies Below the Demand Curve

Question 25

Multiple Choice

The monopolist's marginal revenue curve lies below the demand curve because


A) the monopoly is not an efficient producer
B) as the monopolist increases output, the price falls
C) there is no account of implicit costs
D) the monopolist's demand curve is the market demand
E) the monopolist can charge the highest price possible

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