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If a Monopolist's Marginal Cost Is Zero,in Order to Maximize

Question 82

Multiple Choice

If a monopolist's marginal cost is zero,in order to maximize profit the monopolist will:


A) set a price where demand is unit elastic.
B) produce where demand is elastic.
C) expand output to the limit of its physical capacity.
D) not impose an efficiency loss on the society,since P=MC.

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