Which of the following statements regarding a monopolist's profit maximizing condition is false?

Question

Quizplus · Accepted Answer

The statement "Because monopoly price is above marginal cost and a monopoly earns positive economic profit, there are no benefits to consumers in the monopoly market" is false. While it is true that a monopoly's price is higher than marginal cost, and the firm earns positive economic profit, consumers may still benefit from the monopoly market in terms of innovation, product development, and other positive externalities. This statement is false because there can be benefits to consumers in a monopoly market, such as the development of new products and technologies, economies of scale, and the ability to invest in research and development. However, these benefits may not outweigh the negative effects of higher prices and reduced consumer surplus.

Which of the Following Statements Regarding a Monopolist's Profit Maximizing