-Referring to the above graphic, which of the following statements is FALSE?
A) In panel (a), a competitive situation is shown in which equilibrium is established at the intersection of D and S at point E.
B) In panel (a), the equilibrium price is Pe and the equilibrium quantity Qe.
C) The price the monopolist charges in panel (b) at Pm is lower than the price that the competitive producer charges.
D) The monopolist produces at Qm, and charges a price ofPm, while maximizing profits at the intersection of MC and MR.

Question

-Referring to the above graphic, which of the following statements is FALSE?
A) In panel (a), a competitive situation is shown in which equilibrium is established at the intersection of D and S at point E. 
B) In panel (a), the equilibrium price is Pe and the equilibrium quantity Qe. 
C) The price the monopolist charges in panel (b) at Pm is lower than the price that the competitive producer charges. 
D) The monopolist produces at Qm, and charges a price ofPm, while maximizing profits at the intersection of MC and MR.

Quizplus · Accepted Answer

In panel (b), the monopolist typically charges a higher price (Pm) than the competitive price (Pe) found in panel (a), as monopolists have market power that allows them to set prices above competitive levels.

-Referring to the Above Graphic, Which of the Following Statements