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    profit maximizing

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    "How high should a monopoly set its prices in order to maximize profits? When you post a response to this question, place it in the context of one of the following examples:

    A geographically isolated gas station.
    A concert on campus.
    Soft drinks at a sporting event.
    A prescription drug. "

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    Solution Preview

    In the case of a prescruption drug, or any other monopoly, the firm should set price at MC = MR. This is profit maximizing. The ...

    Solution Summary

    This solution briefly exemplifies profit maximizing. The geographically isolation for a gas station are determined.