A simple profit-maximizing monopolist with a continuous linear demand curve has positive marginal costs at all levels of production above X = 0. Which one of the following statements is FALSE in the short run? Select one: a. At the chosen level of output, an increase in the price of the good will necessarily reduce total revenue b. At the chosen level of output, demand for the good is price elastic c.At the chosen level of output, the monopolist is not maximizing total revenue d.At the chosen level of output, economic profit is necessarily positive
A simple profit-maximizing monopolist with a continuous linear demand curve has positive marginal costs at all levels of production above X = 0. Which one of the following statements is FALSE in the short run? Select one: a. At the chosen level of output, an increase in the price of the good will necessarily reduce total revenue b. At the chosen level of output, demand for the good is price elastic c.At the chosen level of output, the monopolist is not maximizing total revenue d.At the chosen level of output, economic profit is necessarily positive
Micro Economics For Today
10th Edition
ISBN:9781337613064
Author:Tucker, Irvin B.
Publisher:Tucker, Irvin B.
Chapter9: Monopoly
Section: Chapter Questions
Problem 19SQ
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A simple profit-maximizing monopolist with a continuous linear
Select one:
a. At the chosen level of output, an increase in the price of the good will necessarily reduce total revenue
b. At the chosen level of output, demand for the good is price elastic
c.At the chosen level of output, the monopolist is not maximizing total revenue
d.At the chosen level of output, economic profit is necessarily positive
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