Which of the following is true for the monopolist?
A) Marginal revenue is less than the price charged.
B) Economic profit is possible in the long-run.
C) Profit maximizing or loss minimizing occurs when marginal revenue equals marginal cost.
D) All of the above.
E) None of the above.

Question

Quizplus · Accepted Answer

A monopolist can have marginal revenue less than the price due to the downward-sloping demand curve, can earn economic profit in the long-run due to barriers to entry, and maximizes profit or minimizes loss where marginal revenue equals marginal cost.

Which of the Following Is True for the Monopolist