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An increase in demand for a monopolist will cause the a) profit-maximizing price to decrease when marginal cost decreases as quantity increases. b) profit-maximizing price

An increase in demand for a monopolist will cause the

a) profit-maximizing price to decrease when marginal cost decreases as quantity increases.

b) profit-maximizing price to increase when marginal cost decreases as quantity increases.

c) profit-maximizing price to decrease when marginal cost increases as quantity increases.

d) profit-maximizing price to stay constant regardless of the shape of the marginal cost curve

The answer is A. Why?

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