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An increase in the supply of a monopolyst
1- The increase in the monopolist’s supply leads to a positive quantity effect associated with an increase in the gap between the proposed price and the marginal cost
2- A positive quantity effect associated with an unchanged gap between the proposed price and the marginal cost
3- A positive quantity effect associated with a decrease in the gap between the proposed price and the marginal cost
A monopolyst will limit the entry of potential competitor
1- By setting its price close to the average cost
2- By setting its price close to the total cost
3- By setting its price close to the Marginal cost
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