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Homework answers / question archive / A nondiscriminating monopolist faces a downward sloping demand curve and faces increasing costs of production
A nondiscriminating monopolist faces a downward sloping demand curve and faces increasing costs of production. At price P1, the monopolist sells Q1 units of output. At price P2, the monopolist sells Q2 units of output. At both prices, the monopolist produces the same amount of revenue. Determine if the following statement is either True or False. If the monopolist maximizes profit, then it is indifferent between offering the good at either price, since at either price it produces the same amount of revenue.
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