Which of the following statements is false ?
A)For a price taker, P MR, but for a price searcher, P = MR.
B)A monopoly firm's demand curve lies above its marginal revenue curve.
C)A single-price monopolist charges the same price for all units of its product.
D)If a single-price monopolist sells the first unit of its product for $11, it cannot sell two units of its product for $11 each.

Question

Which of the following statements is false ?
A)For a price taker, P > MR, but for a price searcher, P = MR.
B)A monopoly firm's demand curve lies above its marginal revenue curve.
C)A single-price monopolist charges the same price for all units of its product.
D)If a single-price monopolist sells the first unit of its product for $11, it cannot sell two units of its product for $11 each.

Quizplus · Accepted Answer

For a price taker, P = MR, but for a price searcher, P > MR. This is because a price taker faces a perfectly elastic demand curve, and any increase in price will cause them to lose all customers. On the other hand, a price searcher faces a downward sloping demand curve and must lower price to sell more units, resulting in a lower marginal revenue for each additional unit sold. Therefore, statement A is false.

Which of the Following Statements Is False