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Suppose We Know That a Monopolist Is Maximizing Its Profits

Question 127

Multiple Choice

Suppose we know that a monopolist is maximizing its profits.Which of the following must be true? The monopolist has


A) maximized its total revenue.
B) set price equal to its average cost.
C) maximized the difference between marginal revenue and marginal cost.
D) equated marginal revenue and marginal cost.

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