Which of the following is generally true of monopoly?
A) Price exceeds marginal cost.
B) Marginal revenue is less than price.
C) Output is restricted relative to the socially efficient level.
D) All of the above are generally true of monopoly.

Question

Quizplus · Accepted Answer

All of the options listed are generally true of monopoly. Monopoly firms have market power, which allows them to charge a price above marginal cost, leading to output restriction and marginal revenue being less than price. Monopolies do not operate at the socially efficient level of output, leading to deadweight loss.

Which of the Following Is Generally True of Monopoly