Which of the following statements about the long-run equilibrium of a monopoly firm is incorrect?
A)A monopoly firm has no supply curve.
B)A monopoly firm will never sell where the demand is elastic.
C)A monopoly firm will not always make economic profits.
D)A monopoly firm's demand curve coincides with its average revenue curve.

Question

Quizplus · Accepted Answer

A monopoly firm can sell where the demand is elastic in the short run, but in the long run, it will adjust its prices or output to maximize its profits. However, it is incorrect to say that a monopoly firm will never sell where the demand is elastic.

Which of the Following Statements About the Long-Run Equilibrium of a Monopoly