Which of the following is false?
A)A true or pure monopoly exists where there is only one seller of a product for which no close substitute is available.
B)The situation in which one large firm can provide the output of the market at a lower cost than two or more smaller firms is called a natural monopoly.
C)In monopoly, the market demand curve may be regarded as the demand curve for the firm because it is the market for that particular product.
D)A monopoly firm is a price maker, and it will pick a price that is the highest point on its demand curve.
E)None of the above are false.

Question

Quizplus · Accepted Answer

A monopoly firm is a price maker, but it does not necessarily pick the highest point on its demand curve. Instead, it chooses a price and output level where it maximizes its profit, which is not necessarily the highest price.

Which of the Following Is False