Which of the following is false?
A) A true or pure monopoly exists where there is only one seller of a product for which no close substitute is available.
B) The situation in which one large firm can provide the output of the market at a lower cost than two or more smaller firms is called a natural monopoly.
C) In monopoly, the market demand curve may be regarded as the demand curve for the firm because it is the market for that particular product.
D) A monopoly firm is a price maker, and it will pick a price that is the highest point on its demand curve.

Question

Quizplus · Accepted Answer

A monopoly firm is a price maker, but it does not necessarily pick the highest point on its demand curve. Instead, it chooses a price and output level where it maximizes its profit, which is typically not at the highest price point on the demand curve.

Which of the Following Is False