Which of the following is true for a monopolist but not for a perfectly competitive firm?
a. Marginal revenue is less than price.
b. Economic profits could be earned in the long run.
c. Profit maximization occurs at the output level where marginal revenue equals marginal cost.
d. (a) and (b) are true for a monopolist but not for a perfectly competitive firm.
Question 2
If the average costs of production decline with increases in output, then the larger a firm is, the lower its per unit costs will be.
a. True
b. False
Indicate whether the statement is true or false
