When will a monopoly set its price equal to marginal cost? A monopoly will set its price equal to marginal cost when O A. consumer demand is infinitely elastic. B. new firms cannot threaten to enter. C. consumers are not sensitive to price. D. its marginal revenue curve is downward-sloping. E. it has no fixed costs.
When will a monopoly set its price equal to marginal cost? A monopoly will set its price equal to marginal cost when O A. consumer demand is infinitely elastic. B. new firms cannot threaten to enter. C. consumers are not sensitive to price. D. its marginal revenue curve is downward-sloping. E. it has no fixed costs.
Chapter13: Monopoly And Antitrust
Section: Chapter Questions
Problem 6P
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