Which Statement Is NOT Correct for a Monopolist

question 167

Multiple Choice

Which statement is NOT correct for a monopolist?

• A) Because it takes the demand curve as given, a monopolist has no influence over price.
• B) A profit-maximizing monopolist will expand output until MR = MC.
• C) Marginal revenue is less than the price at the profit-maximizing level of output.
• D) A monopolist faces a downward-sloping market demand curve.

---

Definitions:

Bearer

Pertaining to negotiable instruments, it refers to the individual possessing the document entitled to the rights therein.

Instrument

A legal document formally evidencing a right or obligation, such as contracts, wills, or promissory notes.

Good Faith

A principle that emphasizes honesty, fairness, and integrity in the fulfillment of contractual obligations or in negotiations.

Reasonable Commercial Standards

A legal concept referring to the standard practices and methods used by reasonably prudent and competent parties in a particular industry.