Which of the following statements concerning a monopolist is FALSE?
A) A monopolist will produce at which MR = MC.
B) For a monopolist, marginal revenue is less than price.
C) A monopolist will charge the highest price at which any individual will purchase the product.
D) A monopolist will shut down if price is less than average variable cost.
C
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Assume a two-country, two-commodity, two-input model where the following relationships hold:(K/L)U.S. > (K/L)ROW(K/L)automobiles > (K/L)shoes(K/L)U.S. is the capital-labor ratio in the United States, (K/L)ROW is the capital-labor ratio in the Rest of the World, (K/L)automobiles indicates the capital-labor ratio in the production of automobiles, and (K/L)shoes indicates the capital-labor ratio in the production of shoes.Assume further that technology and tastes are the same in the United States and the Rest of the World. If trade opens up between the United States and the Rest of the World, according to the Heckscher-Ohlin model, the United States will export ________ and import
A. shoes; automobiles. B. automobiles; shoes. C. neither good; both goods. D. both goods; neither good.
One way to solve the free-rider problem is:
A. tax everyone an equal amount for the good. B. have the government provide the good at a certain cost. C. make the good or service more excludable. D. tax those who truly value the good.