CFA Practice Question

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CFA Practice Question

A monopolist will choose a level of output that sets ______.

A. the price equal to the marginal cost
B. marginal cost equal to the market demand curve
C. marginal revenue equal to marginal cost
Correct Answer: C

A monopolist sets output at the level where marginal revenue, not price, is equal to marginal cost.

User Contributed Comments 2

User Comment
chris12345 excellent question
guest chris12345: LOL
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