Which of the following is true for a firm that has a monopoly in the output market?
A)The marginal revenue product and marginal value product for the monopolist are equal.
B)The demand curve for an input is the same as the marginal value product curve.
C)The slope of the input demand curve is the same for a monopolist and a competitive firm.
D)Employment of an input is lower under monopoly than under perfect competition.

Question

Quizplus · Accepted Answer

Monopolists restrict output to raise prices, which generally leads to lower employment of inputs compared to a perfectly competitive market where firms produce where price equals marginal cost, leading to higher output and input employment.

Which of the Following Is True for a Firm That