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Title: A monopolist charges 7 per unit for selling 6 units of his product. To sell 7 units, he reduces ...
Post by: Jipu 123 on Jun 30, 2018

A monopolist charges 7 per unit for selling 6 units of his product. To sell 7 units, he reduces price to 6.5 per unit. The marginal revenue (net addition to revenue) from selling the seventh unit is then 3.5.
  Indicate whether the statement is true or false

Question 2

In long-run equilibrium in perfect competition, the entry and exit of firms will drive economic profits to zero.
 a. True
  b. False
  Indicate whether the statement is true or false

Title: A monopolist charges 7 per unit for selling 6 units of his product. To sell 7 units, he reduces ...
Post by: prumorgan on Jun 30, 2018

Answer to Question 1

T

Answer to Question 2

True