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Company XYZ is a profit-maximizing monopoly in the production of good A.Below shows the demand (Qd), marginal cost (MC) and marginal revenue (MR) schedules for

Company XYZ is a profit-maximizing monopoly in the production of good A.Below shows the demand (Qd), marginal cost (MC) and marginal revenue (MR) schedules for XYZ.

Price ($) per unit of A

10

9

8

7

6

5

Qd for A (unit)

10

12

14

16

18

20

MR of A ($)

n.a.

8

4

0

-4

-8

MC of A ($)

2

3

4

5

6

7

What is the social optimal quantity?

A.14

B.18

C.16

D.20

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