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Economics: Market Structure and Macroeconomic Analysis - Rea

Q11. A monopolist will maximize profits by:

A)   producing at the output level where marginal revenue equals marginal cost and charging a price on the demand curve that corresponds to the output rate.

B)   producing at the point where price is equal to MR.

C)   producing at the output level where marginal revenue equals average variable cost and charging a price along the demand curve that corresponds to the output rate.

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d

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