Answer to Question #234151 in Microeconomics for Lesedi

Question

Which of the following statements about a monopoly is true?

A. The monopolist has a flat demand curve because of high barriers to entry.

B. For a monopolistic firm, profit will be maximised where price = marginal revenue.

C. In the long run, a monopolist can earn only normal profits.

D. Price, in the long run, is not usually equal to the minimum average total cost.

Answer 1

The correct choice is D

Price, in the long run, is not usually equal to the minimum average total cost.