Which of the Following Statements Is Correct for Both a Monopolist

question 70

Multiple Choice

Which of the following statements is correct for both a monopolist and a perfectly competitive firm? (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:

Emotional Reasoning

A cognitive process where a person concludes that their emotional reaction reflects the way things really are, despite contrary empirical evidence.

Wilhelm Wundt

A psychologist often regarded as the father of experimental psychology, known for establishing the first psychology laboratory.

Psychology

The scientific study of the human mind and its functions, especially those affecting behavior in a given context.

Science

Science is the systematic study of the structure and behavior of the physical and natural world through observation and experiment.