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T or F explain 4. (6 marks) Once a movie is produced, the distributor is the monopolist selling the movie. Suppose movie distribution involves only
T or F explain
4. (6 marks) Once a movie is produced, the distributor is the monopolist selling the movie. Suppose movie distribution involves only fixed cost but no marginal cost. If the distributor practises simple monopoly pricing, the demand at the quantity sold is strictly price elastic (that is, the absolute value of the price elasticity of demand at the quantity sold is strictly greater than 1).
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