Since marginal revenue is less than price for a monopolist, a monopolist maximizes profits by equating marginal revenue and marginal cost, not price and marginal cost.
Answer the following statement true (T) or false (F)
True
Price equals marginal revenue for purely competitive firms only, not for monopolies.
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A "prisoner's dilemma" can arise when:
a. two large countries simultaneously and independently apply tariffs on imports from each other. b. two large countries simultaneously and independently eliminate tariffs on imports from each other. c. one large country eliminates tariffs on imports from another large country. d. one small country eliminates tariffs on imports from a large country.
A major characteristic of structural unemployment that differentiates it from frictional unemployment is that structural unemployment
A) exists only during a recession. B) exists in an expansion whereas there is no frictional unemployment in an expansion. C) is a short-term problem. D) usually lasts longer than frictional unemployment.