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The Following Graph Shows the Marginal Revenue (MR), Marginal Cost

question 22

Multiple Choice

The following graph shows the marginal revenue (MR) , marginal cost (MC) , demand and average revenue (D = AR) curves for a profit-maximizing firm. Refer to the graph to answer the question. The following graph shows the marginal revenue (MR) , marginal cost (MC) , demand and average revenue (D = AR) curves for a profit-maximizing firm. Refer to the graph to answer the question. Which of the following statements is true? A) The firm is a price leader in this market. B) Firms in this market produce highly differentiated products. C) A small change in the marginal cost will lead to a large change in the equilibrium price. D) Below the market price, the demand curve is price inelastic. Which of the following statements is true?

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