crterrill3681 crterrill3681

26-04-2024
Business

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In a monopoly market, the magnitude demand elasticity at quantity of 10 units is |E|=0.8. What happens if the monopolist expands output to 11 units?
a.Total Revenue increases.
b.Total Revenue decreases but Marginal Revenue increases.
c.Total Revenue decreases and Marginal Revenue is negative.
d.Profit increases.

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