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    Microeconomics Theory Study Set 1
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    Exam 11: Monopoly and Monopsony
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    A Monopoly Incurs a Marginal Cost of $1 for Each
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A Monopoly Incurs a Marginal Cost of $1 for Each

Question 32

Question 32

Multiple Choice

A monopoly incurs a marginal cost of $1 for each unit produced.If the price elasticity of demand equals -2.0,the monopoly maximizes profit by charging a price of


A) $1.
B) $1.50.
C) $2.
D) $3.

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