Using the figure as a guide, which of the following is FALSE with respect to profit maximization and the monopolist?

Question

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Option A is true as a monopolist will select an output rate where marginal revenue is equal to marginal cost. Option B is false as the monopolist will produce at the quantity where marginal revenue equals marginal cost, which is 11ea6911_ba18_5abf_80d0_5dcc6598219d_TB5013_11. However, the price will be higher than the competitive price as the monopolist has market power. Option C is false as consumers do not necessarily have to purchase more of a product as price varies directly with quantity demanded. Rather, the quantity demanded may decrease as the price increases due to the law of demand. Option D is true as profits are the positive difference between total revenues and total costs.

Using the Figure as a Guide, Which of the Following