In constructing the monopolist's input demand curve, which of the statements is FALSE?
A) The demand curve has a negative slope due to the law of diminishing marginal product.
B) Marginal revenue is always positive.
C) A monopoly restricts output and hires fewer units of labor than a perfectly competitive firm.
D) The supply curve a monopoly faces is horizontal because the monopoly is a price taker.
B
You might also like to view...
A budget surplus means that:
A. Government expenditures are greater than revenues in a given year B. Government revenues are greater than expenditures in a given year C. A nation's exports are greater than its imports D. A nation's imports are greater than its exports
Ignoring income effects, an increase in the wage rate will cause an increase in the quantity of labor supplied.
Answer the following statement true (T) or false (F)