A Single-Price Monopoly with the Same Market Demand and Cost

question 157

Multiple Choice

A single-price monopoly with the same market demand and cost structure as a perfectly competitive market will produce

• A)the same output level at the same price as the perfectly competitive market
• B)less because the monopolist will not produce all units for which marginal revenue exceeds its marginal cost
• C)less since the monopolist's marginal revenue curve lies below its demand curve
• D)more because the monopolist will be more efficient
• E)more because the monopolist's marginal cost curve slopes upward