(1) Which isNOT TRUEfor a profit maximizing monopolist?

a.The firm operates on the demand curve where |e|< 1

b.P > MC

c.Profit maximizing Q for the firm is determined where MC = MR

d.As Q increases, MR falls faster than Average Revenue

(2) In the long run a profit maximizing monopolist operates where

a.Long-run MC is constant

b.Price is equal to MR

c.Long-run MC = MR

d.Long-run ATC is rising