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.
C
You might also like to view...
How are the following transactions entered into the U.S. balance of payments?
(a) The U.S. government sends $2,000 worth of food aid to Africa. (b) A U.S. firm exports $10,000 worth of goods to the United Kingdom, payable in 3 months. (c) A U.S. tourist in Amsterdam spends $200 for food and hotels.
Ascertaining whether or not a regressor is strictly exogenous or exogenous ultimately requires all of the following with the exception of
A) economic theory. B) institutional knowledge. C) expert judgment. D) use of HAC standard errors.
Very often, the reason that players can solve the prisoners' dilemma and reach the most profitable outcome is that
a. each player tries to capture a large portion of the market share. b. the players play the game not once but many times. c. the game becomes more competitive. d. self interest results in the Nash equilibrium which is the best outcome for the players.
The use of pollution permits by the government to reduce pollution is:
A. theoretically interesting, but untried in the United States. B. common in several parts of the United States. C. common in the third world. D. workable in theory but unworkable in practice.