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A Profit-Maximizing Monopoly Firm That Sells Output in Two Distinct

Question 55

Multiple Choice

A profit-maximizing monopoly firm that sells output in two distinct markets,A and B,will be in equilibrium when:


A) the price in each market is equal to its marginal cost of production.
B) the marginal revenue in each market is equal to the price in that particular market.
C) the marginal revenue in each market is equal to its marginal cost of production.
D) the gap between price and marginal cost is maximized in each market.

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