Which of the Following Is TRUE for Monopolists

question 114

Multiple Choice

Which of the following is TRUE for monopolists?

• A) They charge a price below average cost, which guarantees above normal profits.
• B) Their marginal revenue increases with output.
• C) They maximize profits by producing at the midpoint of their demand curve.
• D) They produce all units of output for which marginal revenue is greater than or equal to marginal cost.

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