Which of the following statements is false?
A)For a price taker, P = MR, but for a price searcher, P MR.
B)A monopoly firm's demand curve lies above its marginal revenue curve.
C)A single-price monopolist charges the same price for all units of its product.
D)If a single-price monopolist sells the first unit of its product for $11, it cannot sell two units of its product for $11 each.
E)none of the above

Question

Which of the following statements is false?
A)For a price taker, P = MR, but for a price searcher, P > MR.
B)A monopoly firm's demand curve lies above its marginal revenue curve.
C)A single-price monopolist charges the same price for all units of its product.
D)If a single-price monopolist sells the first unit of its product for $11, it cannot sell two units of its product for $11 each.
E)none of the above

Quizplus · Accepted Answer

All the statements provided are true regarding economic concepts. A) In perfect competition, a price taker's price equals marginal revenue (P = MR), while a price searcher (monopolist) has a price greater than marginal revenue (P > MR) because they have some control over the price. B) For a monopoly, the demand curve indeed lies above the marginal revenue curve due to the downward-sloping demand curve and the need to lower the price to sell additional units. C) A single-price monopolist charges the same price for all units sold, not discriminating between buyers or units. D) If a single-price monopolist sells the first unit at $11, to sell more units, the price for all units must decrease, reflecting the downward-sloping demand curve; thus, it cannot sell two units at $11 each if the first unit was sold at that price.

Which of the Following Statements Is False