In Constructing the Monopolist's Input Demand Curve, Which of the Statements

question 116

Multiple Choice

In constructing the monopolist's input demand curve, which of the statements is FALSE?

• A) The demand curve has a negative slope due to the law of diminishing marginal product.
• B) Marginal revenue is always positive.
• C) A monopoly restricts output and hires fewer units of labor than a perfectly competitive firm.
• D) The supply curve a monopoly faces is horizontal because the monopoly is a price taker.

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