A monopolist faces a downward-sloping demand curve because

it enjoys high market power

its average revenue equals price

it marginal revenue lies above its demand curve

it sells typically to only one consumer

A monopolist will benefit by reducing price and raising output whenever

marginal cost is greater than marginal revenue

marginal revenue is equal to marginal cost

marginal revenue is greater than marginal cost

average revenue is greater than average cost

Which of the following features of monopoly is beneficial for society?

it causes a deadweight social loss

it achieves monopoly rent

it achieves a high mark-up

it saves on advertising costs

The market price decreases for the perfectly competitive firm. In order to maximize profit, the firm should

none of these as profit and output are unrelated for the perfectly competitive firm

produce the same amount of output

produce less output

produce more output

The marginal revenue of the monopoly decreases at a constant rate with output.

True

False