When the total product curve is falling, the marginal product of labor is negative. A price-taking firm cannot influence the price of the product. A monopoly maximizes profit by choosing the quantity at which marginal revenue greater than marginal cost. Total cost always greater then fix cost never equal to fix cost. The key difference between a competitive firm and a monopoly is the ability to influence the price.
When the total product curve is falling, the marginal product of labor is negative. A price-taking firm cannot influence the price of the product. A monopoly maximizes profit by choosing the quantity at which marginal revenue greater than marginal cost. Total cost always greater then fix cost never equal to fix cost. The key difference between a competitive firm and a monopoly is the ability to influence the price.
Economics (MindTap Course List)
13th Edition
ISBN:9781337617383
Author:Roger A. Arnold
Publisher:Roger A. Arnold
Chapter23: Monopoly
Section: Chapter Questions
Problem 2WNG
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Q1-Select the true or false for the following statement also give the explanation and support your answer with graphical presentation where necessary. Explanation is compulsory 3 to 6 line.
- When the total product curve is falling, the marginal product of labor is negative.
- A price-taking firm cannot influence the price of the product.
- A
monopoly maximizes profit by choosing the quantity at which marginal revenue greater than marginal cost. - Total cost always greater then fix cost never equal to fix cost.
- The key difference between a competitive firm and a monopoly is the ability to influence the price.
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