Which of the Following Statements Is Correct for a Monopolist

question 45

Multiple Choice

Which of the following statements is correct for a monopolist? i) The firm maximizes profits by equating marginal revenue with marginal cost.
Ii) The firm maximizes profits by equating price with marginal cost.
Iii) Demand equals marginal revenue.
Iv) Average revenue equals price.

• A) i), iii), and iv) only
• B) i) and iv) only
• C) i), ii), and iv) only
• D) i), ii), iii), and iv)

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Definitions:

Flat Taper

A gradual reduction in thickness or diameter across a flat surface or material.

Shims

Thin pieces of material used to fill small gaps or spaces between objects for proper fit, alignment, or support.

Dowels

Cylindrical rods, typically made of wood, metal, or plastic, used to reinforce joints or support shelves and other components in furniture.

Cylinders

Three-dimensional geometric shapes with straight parallel sides and a circular or oval cross-section.