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pera.com/player?assessmentpund =284872948 com A monopolist maximize profits by setting its marginal cost equal to its marginal revenue. a) True

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pera.com/player?assessmentpund =284872948 com
A monopolist maximize profits by setting its marginal cost equal to its marginal revenue.
a)
True

pera.com/player?assessmentpund =284872948 com A monopolist maximize profits by setting its marginal cost equal to its marginal revenue. a) True

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False. A monopolist maximizes profits by setting marginal revenue equal to marginal cost, not by setting them equal to each other. In a monopoly, the marginal revenue is always less than the price because the monopolist has to lower the price to sell additional units. Therefore, the profit-maximizing condition for a monopolist is to produce the quantity where marginal revenue cost.
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