Demand is inelastic and marginal revenue is negative

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Reference no: EM13854021

If a monopolistic firm (price searcher) can sell 9 units at a price of $100 each but must reduce its price to $80 in order to sell 10 units, then

A. Demand is inelastic and marginal revenue is negative

B. Marginal revenue is falling but is above price

C. Demand is elastic and marginal revenue is positive

D. $100 is the optimal price

Reference no: EM13854021

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