Which of the Following Statements Is False

question 27

Multiple Choice

Which of the following statements is false ?

• A)For a price taker, P > MR, but for a price searcher, P = MR.
• B)A monopoly firm's demand curve lies above its marginal revenue curve.
• C)A single-price monopolist charges the same price for all units of its product.
• D)If a single-price monopolist sells the first unit of its product for $11, it cannot sell two units of its product for $11 each.

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Definitions:

Income Effect

The alteration in the consumption habits of a person or an economy due to a variation in actual income.

Inferior Good

A type of good for which demand decreases when income increases, and vice versa, unlike normal goods where demand increases with an increase in income.

Marginal Utility

The additional enjoyment or value that comes from the consumption of one more unit of a product or service.

Optimal Consumption

The allocation of resources or choosing of goods and services that maximizes the utility or satisfaction of a consumer, given their budget constraints.