Which one of the following statements concerning pure monopolies is correct?
A. The demand curve of a monopolist is perfectly elastic.
B. The price at which a monopolist maximizes its profit is where price equals both marginal cost and marginal revenue.
C. A monopolist\\’s marginal revenue curve lies below its demand curve.
D. The supply curve of a monopolist is perfectly inelastic.
Answer:C
Which one of the following statements concerning pure monopolies is correct?
A. The demand curve of a monopolist is perfectly elastic. B. The price at which a monopolist maximizes its profit is where price equals both marginal cost and marginal revenue. C. A monopolist\\’s marginal revenue curve lies below its demand curve. D. The supply curve of a monopolist is perfectly inelastic.