13Which of the following statements regarding a monopolist i

13Which of the following statements regarding a monopolist is false?

The marginal revenue curve lies below the demand curve for the monopolist\'s output.

Unlike a perfectly competitive firm, a monopolist faces little or no competition.

The monopolist sets price equal to marginal cost to maximize profits.

The monopolist may or may not earn positive economic profits.

Solution

Answer:

the answer is option c

The monopolist sets price equal to marginal cost to maximise profit.

To maximise profit, monopolist charge price where MR = MC.