Which is true of a single price monopoly firm?
A)Its supply curve is equal to its marginal cost function
B)It can not pass along all its cost increases directly to the customer
C)Its shutdown point is where ATC = price
D)An increased profits tax will lower the quantity the firm will produce

Question

Quizplus · Accepted Answer

A single price monopoly firm cannot pass along all its cost increases directly to the customer because it is constrained by the demand curve it faces.

Which Is True of a Single Price Monopoly Firm