Multiple Choice
Suppose that the elasticity of demand at a competitive equilibrium is 2.50.If the price under monopoly is 10 percent higher than under perfect competition,assuming identical cost curves,one can conclude that the monopoly output is _____ percent below of the competitive output.
A) 25
B) 40
C) 2.5
D) 4
Correct Answer:
Verified
Correct Answer:
Verified
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