For a nondiscriminating monopolist, which of the following is false?
A)The monopolist produces where MR = MC.
B)The monopolist's marginal revenue curve is the same as its demand curve.
C)The monopolist will never produce in the inelastic range of its demand curve.
D)A monopolist is more allocatively inefficient than a perfectly competitive firm.
E)The monopolist produces where P MC.

Question

For a nondiscriminating monopolist, which of the following is false?
A)The monopolist produces where MR = MC.
B)The monopolist's marginal revenue curve is the same as its demand curve.
C)The monopolist will never produce in the inelastic range of its demand curve.
D)A monopolist is more allocatively inefficient than a perfectly competitive firm.
E)The monopolist produces where P > MC.

Quizplus · Accepted Answer

A nondiscriminating monopolist's marginal revenue curve is not the same as its demand curve; the MR curve lies below the demand curve because the monopolist must lower the price to sell additional units.

For a Nondiscriminating Monopolist, Which of the Following Is False