What is the “Hotelling rule” for a monopolist? A) Price minus margina
What is the “Hotelling rule” for a monopolist?
A) Price minus marginal cost must rise at exactly the rate of interest.
B) Price plus marginal cost must rise at exactly the rate of interest.
C) Marginal revenue minus marginal cost must rise at exactly the rate of interest.
D) Marginal revenue and marginal cost must be independent of the rate of interest.
ANSWER
C
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