Which statement is true?
A)The monopolist's most efficient output is its most profitable output as well.
B)The monopolist charges a higher price than the perfect competitor in the long run.
C)All monopolists have control over an essential resource.
D)None of these statements are true.

Question

Quizplus · Accepted Answer

The monopolist charges a higher price than the perfect competitor in the long run due to its market power and lack of competition. A is incorrect because the monopolist's most efficient output may not necessarily be its most profitable output, as profit maximization involves weighing the benefits of producing additional units versus the costs. C is incorrect because monopolists may have various sources of market power, such as economies of scale or brand recognition, and do not necessarily control an essential resource. D is incorrect because statement B is true.

Which Statement Is True