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If the pure monopoly were forced to produce the allocatively efficient level of output through the imposition of a price ceiling, the price would have to be set at Multiple Choice $100 $200 $150 $250

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Answer:

To determine the price at which the pure monopoly would have to be set to produce the allocatively efficient level of output through the imposition of a price ceiling, we need to consider the concept of allocative efficiency in monopolies.

Allocative efficiency occurs when the production of goods or services is at a level where the marginal benefit to society (demand) equals the marginal cost of production. In a monopoly, the marginal cost (MC) represents the additional cost of producing one more unit, and the marginal benefit (MB) represents the additional benefit the consumer receives from consuming one more unit.

To achieve allocative efficiency, the price would need to be set at the point where MC equals MB. This implies that the monopolist would have to set the price such that it is equal to their marginal cost.

Without specific information on the monopolist's marginal cost or the shape of the demand curve, it is not possible to determine the exact price in this scenario. Therefore, I cannot provide a definitive answer among the options given ($100, $200, $150, or $250).

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