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Allegiant Air Holds a Natural Monopoly on Most of the Routes

Question 292

Multiple Choice

Allegiant Air holds a natural monopoly on most of the routes it serves in the United States.Allegiant Air's marginal revenue will ________ when its total revenue ________.


A) equal $0; is maximized
B) be negative; is maximized
C) be positive; is maximized
D) inelastic; is increasing
E) elastic; is increasing

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