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Assume that the short-run cost and demand data given in the table above confront a monopolistic competitor selling a given product and engaged in a given amount of product promotion. Refer to the above table and information. If the firm sells 3 units of output, marginal revenue will be:
A. -$5
B. $35
C. $135
D. $165
What are the advantages and disadvantages of each method. What do you suppose led each company to make their choices.
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