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Yesterday, 12:52

In the two-period dynamic monopoly, if the monopolist succeeds in selling a sufficiently high quantity in the first period, A) the second-period demand curve will become horizontal. B) the second-period demand curve will become unit elastic. C) the second-period demand curve will lie close to the price axis. D) the second-period demand curve will shift substantially to the right.

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  1. Yesterday, 12:58
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    D) the second-period demand curve will shift substantially to the right.

    Explanation:

    If monopolist succeeds in selling a sufficiently high quantity in the first period, then in the second period it will further increase and will shift the demand curve to right hand.
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