Which of the following is most necessary for a monopolist to survive in the long run?

Which of the following statements regarding a monopolist is false?

A) The marginal revenue curve lies below the demand curve for the monopolist's output. B) Unlike a perfectly competitive firm, a monopolist faces little or no competition. C) The monopolist sets price equal to marginal cost to maximize profits. D) The monopolist may or may not earn positive economic profits.

If producers believe that the increase in their relative prices is large relative to the increase in the general price level, then the slope of the short-run aggregate supply curve will be

A) infinite. B) small. C) large. D) negative.