Question

Which of the following statements regarding a monopolist is false? A. The marginal revenue cure lies below the demand curve for the monopolists output. B. Unlike a perfectly competitive firm a monopolist faces little or no competition. C. The monoplist sets price equal to marginal cost to maximize profit. D. The monopolist may or this not earn positive economic profit.

Answer 1

Answer:

C. The monoplist sets price equal to marginal cost to maximize profit.

Explanation:

To maximise the profit, monopolist charge price where MR = MC.