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Unformatted text preview: Revenue A monopolist produces that level of ouput for which MR=MC. Given MC=$4 As per the figures computed, MR is never exactly equal to $4. Thus, the monopolist will produce, 3 units of output and earn greater net revenues (or profit, in the absence of fixed costs) as compared to at 4 units of output. Therefore, equilibrium Q = 3 and P = $7....
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- Spring '10