Which of the following is true under monopoly?
A. P = MR.
B. P > MC.
C. Profits are always positive.
D. All of the choices are true for monopoly.
Answer: B
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Real GDP measures ________.
A. base year output at current prices B. current output at current prices C. base year output at current exchange rates D. current output at base year prices
Distinguish M1 from M2
What will be an ideal response?
The figure above illustrates the bagel market. Which of the following statements is correct?
A) With a price ceiling of $1.00 per bagel, the price of a bagel is $1. B) With a price ceiling of $3.00 per bagel, the price of a bagel is $2. C) With no government intervention, the equilibrium price of a bagel is $2. D) Only answers A and B are correct. E) Answers A, B, and C are correct.
A monopolistically competitive firm can increase its profits beyond the long-run equilibrium break-even level by deliberately lowering its price to force some of its competitors out of the market
Indicate whether the statement is true or false