Which of the Following Statements Regarding a Monopolist Is False

question 99

Multiple Choice

Which of the following statements regarding a monopolist is false?

• A)The marginal revenue curve lies below the demand curve for the monopolist's output.
• B)Unlike a perfectly competitive firm, a monopolist faces little or no competition.
• C)The monopolist sets price equal to marginal cost to maximize profits.
• D)The monopolist may or may not earn positive economic profits.

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Definitions:

Equilibrium Price

The pricing level where goods supplied and goods demanded by consumers are equal.

Government Interference

Actions by a government that affect the market, potentially through regulations, taxes, subsidies, or direct control of industries.

Marginal Cost

Marginal cost is the cost incurred by producing one additional unit of a product or service, often considered for decision-making regarding production levels.

Equilibrium Price

The sale price at which the supply of goods precisely meets the demand in the market.