The monopolist's marginal revenue curve lies below the demand curve because
a. the monopoly is not an efficient producer
b. as the monopolist increases output, the price falls
c. there is no account of implicit costs
d. the monopolist's demand curve is the market demand
e. the monopolist can charge the highest price possible
B
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Which of the following is an example of an external cost?
A) a grove of trees planted in a park in Seattle B) a library built in Philadelphia C) a new, faster computer chip D) an oil spill off the coast of South America E) a student graduating from college
Barriers to entry are
a. not too difficult to overcome in a monopoly market structure b. very high in a perfectly competitive market structure c. nonexistent in an oligopoly market structure d. not too difficult to overcome in a monopolistically competitive industry structure e. nonexistent in a monopoly market structure