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A monopolist has determined that at the current level of output the price elasticity of demand is minus0.15. Which of the following statements is​ true?

A. The firm should increase output.
B. The firm should cut output. Your answer is correct.
C. This is typical for a​ monopolist; output should not be altered.
D. None of the above answers are necessarily correct.

User Stucharo
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1 Answer

4 votes

Answer and Explanation:

B. The firm should cut output

User ItsMeInMiami
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