For a monopoly earning positive economic profits at the profit-maximizing output level, all of the following are true EXCEPT

Question

Quizplus · Accepted Answer

For a monopoly earning positive economic profits at the profit-maximizing output level, all of the following are true except that P = MR. This is because a monopoly has market power and can set prices higher than the marginal revenue, which means that P is greater than MR. Therefore, the correct answer is D.

For a Monopoly Earning Positive Economic Profits at the Profit-Maximizing