A monopoly:
A) faces the market demand curve which is downward sloping.
B) has a marginal revenue curve which slopes downward and lies below its demand curve.
C) will maximize profits by producing an output level where MR = MC.
D) all of these.

Question

Quizplus · Accepted Answer

A monopoly faces a downward-sloping demand curve, has a marginal revenue curve below its demand curve and slopes downward, and maximizes profits at the output level where marginal revenue equals marginal cost.

A Monopoly