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Homework answers / question archive / If, at the output where marginal cost equals marginal revenue, both a pure competitor's and a monopolist's marginal revenue is $5

If, at the output where marginal cost equals marginal revenue, both a pure competitor's and a monopolist's marginal revenue is $5

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If, at the output where marginal cost equals marginal revenue, both a pure competitor's and a monopolist's marginal revenue is $5.00:

A) both sellers' profit-maximizing price will be $5.00.

B) both sellers' profit-maximizing price will be greater than $5.00.

C) the pure competitor's profit-maximizing price will be $5.00, and the monopolist's profit-maximizing price will be greater than $5.00.

D) the monopolist's profit-maximizing price will be $5.00, and the pure competitor's profit-maximizing price will be greater than $5.00.

E) None of the above is correct.

Option 1

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