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Q. Now the monopolist discovers that it will export as much as it likes of its steel at the world price of $5/ton. It will thus expand for- export production up to the point where its marginal cost equals $5. How much steel will the monopolist sell, and at what price?
Answer: It would vend 10 million tons at $5/ton.
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Why Adam Smith theory cannot be applicable?
Lot of
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