Which of the following is not true of a pure monopoly?
A)Demand is negatively sloped
B)Marginal revenue is less than price therefore the firm should consider raising its price until marginal revenue equals demand
C)Marginal revenue is less than average revenue therefore the firm should consider adjusting its quantity until marginal revenue equals average revenue
D)It is a price taker
E)Its position is protected by significant barriers to entry

Question

Quizplus · Accepted Answer

A pure monopoly is a price maker, not a price taker. This means that the firm has the ability to set the price of its product because it has no competitors.

Which of the Following Is Not True of a Pure