Both Monopolists and Cartel Members Will Find That a Drop

question 29

Multiple Choice

Both monopolists and cartel members will find that a drop in price leads to:

• A)a quantity effect that negatively affects total revenue.
• B)a price effect that negatively affects total revenue.
• C)a quantity effect that has no effect on total revenue.
• D)neither a price nor a quantity effect occurring in such markets.

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