Which of the following is true for a monopolist but not for a firm in perfect competition?
A) The marginal revenue curve is downward-sloping.
B) Marginal revenue equals price.
C) Economic profits are zero in the long-run.
D) The marginal revenue curve lies above the demand curve.

Question

Quizplus · Accepted Answer

In a monopolistic market, the marginal revenue curve is downward-sloping because a monopolist faces the entire market demand and must lower the price to sell additional units, which is not the case in perfect competition where firms are price takers and marginal revenue equals price.

Which of the Following Is True for a Monopolist but Not