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A monopoly will set price at the highest price along its demand curve. equal to the value at which marginal cost intersects the demand curve.
A monopoly will set price
at the highest price along its demand curve.
equal to the value at which marginal cost intersects the demand curve.
so that it can sell the quantity at which marginal revenue is equal to marginal cost.
so that it can sell the quantity at which marginal revenue is equal to zero, which results in revenue maximization.
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