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Suppose That at the Competitive Equilibrium,the Elasticity of Demand Is

Question 57

Multiple Choice

Suppose that at the competitive equilibrium,the elasticity of demand is 1.50.If the price under monopoly is 10 percent higher than under perfect competition,assuming identical cost curves,it can be concluded that the monopoly output is _____ percent below the competitive output.


A) 67
B) 1.5
C) 15
D) 0.67

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