Question

21. A monopolist's demand curve is the same as the marginal revenue curve for the product....

21. A monopolist's demand curve is the same as the marginal revenue curve for the product.

Group of answer choices

True

False

In the long-run equilibrium, both the perfectly competitive firm and the monopolistically competitive firm produce the output at which MR = MC and charge a price equal to the average total cost of production.

Group of answer choices

True

False

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Homework Answers

Answer #1

21.

False.

Explanation :

Monopoly faces downward sloping demand curve and marginal revenue curve is below the demand. Perfectly competitive firm faces horizontal demand curve and marginal revenue curve equals the demand curve.

22.

True.

Explanation :

Monopolistically competitive firm and perfectly competitive firm earns zero economic profit in long run. So they produce price =ATC.

Both firms goal is to maximise profit. So they produce marginal revenue =marginal cost.

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