Reference no: EM133083732

Are the following questions true or false?

(A). A profit-maximizing monopolist will produce output where marginal cost is equal to price

(B). Suppose we know that a monopolist is maximizing profits. The monopolist has maximized the difference between marginal revenue and marginal cost.

(C) In perfect competition, MUX = PX is the condition that ensures that firms produce the right things.

(D). A monopoly earns total revenue of Rs5000 when it sells 500 units of output and total revenue of Rs5400 when it sells 600 units of output. Thus, the marginal revenue of the 600th unit is Rs9.

(E). We call a market where there is only one buyer for a good or service a monopoly.

(F). There are a few firms selling differentiated products in a monopolistically competitive industry.

(G). When a demand curve is a downward sloping straight line, the slope of the marginal revenue curve is twice as steep as the demand curve.

(H). The monopolist's profit-maximizing price will be above marginal cost, because at the profit maximizing level of output the monopolist's marginal revenue curve lies below its demand curve.

(I). Because the monopolist is the sole producer of a good, it can never incur a loss.

(J). In perfect competition, price is equal to marginal revenue while in monopoly price is greater than marginal revenue.