Which of the following is not true?
A) The monopolist, like the perfect competitor, will maximize profits at that output where MR = MC.
B) The monopolist, unlike the perfect competitor, will not maximize profits at that output where P = MC.
C) If a monopoly is earning economic profits, they will not be eliminated by entry into the industry.
D) A monopolist produces an output where the value to society from the last unit produced is greater than its marginal cost.

Question

Quizplus · Accepted Answer

The Answer of Which of the following is not true?
A) The monopolist, like the perfect competitor, will maximize profits at that output where MR = MC.
B) The monopolist, unlike the perfect competitor, will not maximize profits at that output where P = MC.
C) If a monopoly is earning economic profits, they will not be eliminated by entry into the industry.
D) A monopolist produces an output where the value to society from the last unit produced is greater than its marginal cost.

Which of the Following Is Not True