A Major Difference Between a Single-Price Monopolist and a Perfectly

question 35

Multiple Choice

A major difference between a single-price monopolist and a perfectly competitive firm is that the

• A) monopolist can maximize profit by setting the price of the output where demand is inelastic.
• B) monopolist can always increase its profits by increasing the price of its output.
• C) monopolist's marginal revenue is less than price.
• D) monopolist is guaranteed to earn an economic profit.