When the demand curve is downward sloping, marginal revenue is
A. equal to price.
B. equal to average revenue.
C. less than price.
D. more than price.
Which of the following is NOT true regarding monopoly?
A. Monopoly is the sole producer in the market.
B. Monopoly price is determined from the demand curve.
C. Monopolist can charge as high a price as it likes.
D. Monopoly demand curve is downward sloping.
Which of the following is true at the output level where P=MC?
A. The monopolist is maximizing profit.
B. The monopolist is not maximizing profit and should increase output.
C. The monopolist is not maximizing profit and should decrease output.
D. The monopolist is earning a positive profit.
Assume that a profit maximizing monopolist is producing a quantity such that marginal revenue exceeds marginal cost. We can conclude that the
A. firm is maximizing profit.
B. firm's output is smaller than the profit maximizing quantity.
C. firm's output is larger than the profit maximizing quantity.
D. firm's output does not maximize profit, but we cannot conclude whether the output is too large or too small.
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