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Question
A monopolist produces in the elastic segment of its demand curve because when it lowers the price,
A) the percentage change increase in quantity demanded is greater than the percentage change decrease in price and total revenue increases.
B) the percentage change increase in quantity demanded is less than the percentage change decrease in price and total revenue increases.
C) the percentage change increase in quantity demanded is greater than the percentage change decrease in price and total revenue decreases.
D) the percentage change decrease in quantity demanded is less than the percentage change decrease in price and total revenue increases.
Answer
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