9 Which of the following is not correct 3 points A A monopol

9) Which of the following is not correct? (3 points) A. A monopolist can alter the market price by adjusting the quantity that it produces. B. The demand curve facing a competitive firm is perfectly elastic. C. The demand curve facing a monopolist is the market demand curve. D. A monopolist can charge any price and sell any quantity that it chooses.

Solution

Option (D) is not correct. That is , a monopolist can charge any price and sell any quantity that it chooses.

Because, a monopolist can only charge a price at which marginal revenue is equal to marginal cost (MR=MC) , and sell the quantity accordingly where MR= MC.