Which of the following statements is not correct?
A)A monopolist's ability to act as a price setter guarantees economic profits in the short run.
B)The monopolist's marginal revenue is less than the price for any output greater than one.
C)A monopolist's demand curve is the same as the market demand curve for the product.
D)In the long run,a monopolist will experience only positive or zero economic profits.

Question

Quizplus · Accepted Answer

A monopolist's ability to act as a price setter does not guarantee economic profits in the short run. The economic profits will depend on the monopolist's costs of production as well as the level of demand for the product. The monopolist might incur losses if the price it sets is too high and the demand for the product is too low.

Which of the Following Statements Is Not Correct