Which statement is true?
A)The monopolist operates at the minimum point of its average total cost curve.
B)Once a monopoly is set up,it is impossible to dislodge it.
C)Monopolies are always large firms.
D)Price is always read off the demand curve.

Question

Quizplus · Accepted Answer

Monopolists determine the price of their product by finding the point on the demand curve that maximizes their profit. This means they look at how much they can charge (the price) for a certain quantity of goods, which is directly read from the demand curve. The other statements are not universally true: monopolists do not always operate at the minimum point of their average total cost curve (A), it is possible, though difficult, to dislodge a monopoly (B), and monopolies can be of any size, not necessarily large (C).

Which Statement Is True