Asked by Jiwanjot Singh on Jun 13, 2024
Verified
Which of the following is false?
A) The monopolist and perfect competitor both produce where MC equals MR.
B) A monopoly is a firm that produces all the output in an industry.
C) If a monopolist is losing money,it is in the long run.
D) Price is read off the demand curve for the monopolist.
MC Equals MR
A condition in economics where the marginal cost of producing an additional unit is equal to the marginal revenue received from selling that unit, often used to determine the optimal level of production in perfectly competitive markets.
Demand Curve
A graph showing the relationship between the price of a good or service and the quantity demanded by consumers.
Monopoly
A market structure characterized by a single seller who has exclusive control over the supply of a good or service, often leading to reduced competition.
- Identify the differences in pricing and output tactics between monopolistic markets and perfectly competitive markets.
- Understand the interrelationship between market structures, monopolies, and economic efficiency.
Verified Answer
DL
Denessa LearyJun 18, 2024
Final Answer :
C
Explanation :
If a monopolist is losing money in the short run, it may continue operating in the hope of making a profit in the long run. However, if it is consistently losing money, it may choose to exit the industry in the long run.
Learning Objectives
- Identify the differences in pricing and output tactics between monopolistic markets and perfectly competitive markets.
- Understand the interrelationship between market structures, monopolies, and economic efficiency.