Figure 11.5 Dollars/unit A Marginal Cost E B Average Total Cost D Demand H JK Quantity (units/week) Marginal Revenue Which of the following statements is correct for a monopolist? (i) The firm maximizes profits by setting output to where marginal revenue equals marginal cost. (ii) The firm maximizes profits by setting price equal to marginal cost. (iii) Demand equals marginal revenue. (iv ) None of the above (i), (iii), and (iv) only (i) only (i), (ii), and (iv) only (i), (ii), (iii), and (iv)