MCQOPTIONS
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| 1. |
When a monopolist produces an additional unit, the marginal revenue generated by that unit must be ? |
| A. | below the price because the price effect outweighs the output effect |
| B. | above the price because the output effect outweighs the price effect |
| C. | above the price because the price effect outweighs the output effect |
| D. | below the price because the output effect outweighs the price effect |
| Answer» B. above the price because the output effect outweighs the price effect | |