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A Monopolist Faces a Market Demand Curve with a Constant

Question 78

Multiple Choice

A monopolist faces a market demand curve with a constant elasticity of -2.The monopoly's production function is Q = 4L and its output price is given by p.What is the monopoly's marginal revenue product of labor function?


A) MRPL = 2p
B) MRPL = 4p
C) MRPL = 10 - 2p
D) MRPL = 5 + 3.5p

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