Which of the Following Statements Is Correct

question 64

Multiple Choice

Which of the following statements is correct?

• A)If the monopolist's marginal revenue is greater than its marginal cost, the monopolist can increase profit by selling more units at a lower price per unit.
• B)If the monopolist's marginal revenue is greater than its marginal cost, the monopolist can increase profit by selling fewer units at a higher price per unit.
• C)When a monopolist produces where price equals the minimum of average total cost, it earns a positive economic profit.
• D)If the monopolist is earning a positive economic profit, it must be producing where MR = MC.

---

Definitions:

Partner Withdrawal

The process or act of a partner exiting from a partnership, impacting the partnership's operation and financial status.

Partnership

A legitimate business arrangement where two or more participants collaborate in running the enterprise and splitting the income.

Fiduciary Duties

Obligations that require a party, typically in a trustee or representative role, to act in the best interests of another party.

Undertake Business

The act of engaging in commercial or professional activities, usually with the objective of generating profit.