Choose the false statement about monopoly. O Natural monopolies usually enjoy economies of scale in production over a large range of output. ○ The profit-maximizing monopolist sets its price as a percentage markup over the marginal cost. O Patents are a possible reason for monopolies to exist. O If the monopolist tries to sell one more unit, it faces a positive price effect and a negative quantity effect.
Choose the false statement about monopoly. O Natural monopolies usually enjoy economies of scale in production over a large range of output. ○ The profit-maximizing monopolist sets its price as a percentage markup over the marginal cost. O Patents are a possible reason for monopolies to exist. O If the monopolist tries to sell one more unit, it faces a positive price effect and a negative quantity effect.
Chapter25: Monopoly
Section: Chapter Questions
Problem 14E
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