Answer the following statement(s) true (T) or false (F)
1. The demand curve for a monopolistic firm is the same as the demand curve for its market.
2. A monopolist’s marginal revenue always less than the price.
3. A monopolist will intentionally operate on the inelastic portion of its demand curve.
4. If marginal costs exceed marginal revenues, profits drop.
5. Multiplying average total cost by the output level gives the total cost.
1. TRUE
2. TRUE
3. FALSE
4. TRUE
5. TRUE
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Indicate whether the statement is true or false
The owner of a productive resource is most usefully thought of as the person who
A) can appropriate the income from its use. B) can use it most efficiently. C) is willing to pay the most to obtain it. D) possesses legal title.