Which statement is true?
A)All monopolies are very large firms.
B)Most monopolists do not produce at an output in which MC = MR.
C)The monopolist's demand curve and MR curve are identical.
D)None of these statements are true.

Question

Quizplus · Accepted Answer

All the statements provided are incorrect. A) Not all monopolies are very large firms; some can be relatively small if they control a niche market. B) Most monopolists aim to produce at an output where marginal cost (MC) equals marginal revenue (MR) to maximize profits. C) The monopolist's demand curve is not identical to its marginal revenue (MR) curve; the MR curve lies below the demand curve due to the downward sloping nature of the demand curve in monopoly markets.

Which Statement Is True