Which of the following is false?
A)Profit is maximized when MR = MC for both monopolies and perfect competition firms
B)Monopolies profit maximize and perfect competitive firms output maximize
C)Both monopolies and perfect competition firms earn zero profit in the long run
D)At equilibrium, price is higher than marginal cost for monopolies but not for competitive firms

Question

Quizplus · Accepted Answer

B is false because both monopolies and perfect competition firms aim to profit maximize, not output maximize. Perfect competition firms do not specifically aim to maximize output; they adjust output to where MR = MC to maximize profits, similar to monopolies.

Which of the Following Is False