What is wrong with the following statements? a. If a monopoly is making a loss where MR
Question:
What is wrong with the following statements?
a. “If a monopoly is making a loss where MR = MC, then it can raise its price to get rid of its loss.”
b. “Monopolies tend to be in markets where demand is inelastic.”
c. “Monopolies react to an increase in demand by raising price, not output.”
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