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.

Question

Quizplus · Accepted Answer

A nondiscriminating monopolist may earn positive economic profit in the short run, but in the long run, other firms may enter the market and drive down profits. Therefore, economic profit may not always be positive for a monopolist.

Which of the Following Falsely Describes a Nondiscriminating Monopolist at Profit