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A monopolist has determined that marginal revenue is $2.00 and average cost is $1.75. It has also determined that the lowest sustainable average cost is $1.75. To maximize profit, should the firm lower its price, increase its price, or leave the price unchanged? How would you change your response if marginal revenue is $1.50?

Macroeconomics, Economics

  • Category:- Macroeconomics
  • Reference No.:- M9748737

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