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monopolist is a price maker. he will determine the quantity of output that will maximize revenue....

monopolist is a price maker. he will determine the quantity of output that will maximize revenue. the monopolistic faces a downward sloping demand curve because he can sell more if he lowers the price. the profit maximizing price and output is where marginal revenue equals marginal cost, then it is extended to the market demand curve to determine what market price corresponds to that quantity. the profit maximization price is c and quantity is q.

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