Using the Figure as a Guide, Which of the Following

question 160

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 Qm and charge a price of Pm.
• 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.

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Definitions:

Establish Responsibilities

The process of defining and assigning tasks and authorities to specific positions or employees within an organization.