Which of the Following Falsely Describes a Nondiscriminating Monopolist at Profit

question 96

Multiple Choice

Which of the following falsely describes a nondiscriminating monopolist at profit maximization?

• A)Price is greater than marginal cost.
• B)Economic profit is always positive.
• C)Marginal revenue is equal to marginal cost.
• D)Marginal revenue will typically be less than price.
• E)Average total cost will not be at a minimum.

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Definitions:

Hypergeometric Random Variable

A discrete random variable that represents the count of successful outcomes in a series of selections from a limited population where each selection is not returned to the pool.

Probability of Success

The likelihood that an event will occur as desired, often represented as a number between 0 and 1.

Mean

The average of a set of numbers, calculated by dividing the sum of these numbers by the count of the numbers in the set.

Binomial Distribution

A probability distribution that summarizes the likelihood that a value will take one of two independent states under a given number of trials.