Essay
Suppose marginal cost is zero and a monopolist was charging a price of $45 for its product and was selling 30 units.If it raises its price to $46,the monopolist sells 28 units.On the other hand,if it lowers its price to $44,it sells 31 units.Should the monopolist raise its price to $46 or lower its price to $44? Explain why.
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The monopolist should reduce t...View Answer
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Correct Answer:
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