Using the Figure as a Guide,which of the Following Is $\mathrm { Q } _ { \mathrm { m } }$

question 189

Multiple Choice

Using the figure as a guide,which of the following is FALSE with respect to profit maximization and the monopolist?

• A)A monopolist (like any other firm)will select an output rate at which marginal revenue is equal to marginal cost,at the intersection of the marginal revenue curve and the marginal cost curve.
• B)The monopolist will produce quantity \(\mathrm { Q } _ { \mathrm { m } }\) and charge a price of \(\mathrm { P } _ { \mathrm { m } }\) .
• C)When compared to a competitive situation,consumers pay a higher price to the monopolist,and consequently are forced to purchase more of a product as price varies directly with quantity demanded.
• D)Profits are the positive difference between total revenues and total costs.