Which statement is NOT correct for a monopolist?
A) Because it takes the demand curve as given, a monopolist has no influence over price.
B) A profit-maximizing monopolist will expand output until MR = MC.
C) Marginal revenue is less than the price at the profit-maximizing level of output.
D) A monopolist faces a downward-sloping market demand curve.

Question

Quizplus · Accepted Answer

A monopolist does not take the demand curve as given; instead, it has significant influence over the price because it is the sole provider of a product or service in the market. This allows the monopolist to set prices above marginal costs, unlike firms in perfectly competitive markets.

Which Statement Is NOT Correct for a Monopolist