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A Profit-Maximizing Monopolist Faces a Downward-Sloping Demand Curve That Has

Question 27

Multiple Choice

A profit-maximizing monopolist faces a downward-sloping demand curve that has a constant elasticity of -4.The firm finds it optimal to charge a price of $24 for its output.What is its marginal cost at this level of output?


A) $55
B) $18
C) $48
D) $10
E) $24

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