Which of the following does NOT describe a profit-maximizing monopolist?
A) The price of output exceeds marginal revenue.
B) The monopolist chooses output where marginal revenue equals marginal cost.
C) The monopolist always earns an economic profit.
D) The monopolist faces the downward-sloping market demand curve.

Question

Quizplus · Accepted Answer

While a profit-maximizing monopolist seeks to maximize profits, it is not always guaranteed to earn an economic profit. Factors such as high fixed costs or intense competition may result in the monopolist earning only a normal or subnormal profit.

Which of the Following Does NOT Describe a Profit-Maximizing Monopolist