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Incurring short-run losses

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Reference no: EM132312356

1. A profit-maximising monopolist will set its price and output where demand is inelastic. Is this statement true or false? Use a diagram and provide a short explanation in your answer.

2. Using a graph, show a situation in which a monopolist is incurring short-run losses. Explain how this is possible.

Reference no: EM132312356

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