Which of the following statements about a monopoly firm are true? (Check all that apply.) It...

Which of the following statements about a monopoly firm are true? (Check all that apply.)

	It faces a downward-sloping demand curve.
	Its long-run average total cost curve is always downward sloping.
	Its marginal revenue is always below the price.
	It is always profitable in the short run.
	It is the only seller of a good or service with no close substitutes available.
	It always experiences economies of scale.

Expert Solution

Option 1, 2, 5

the firm faces a downward demand curve and the marginal revenue curve is double sloped than the demand curve so it below the demand curve and below P.

there is only one seller.

A monopoly may face economies of scale or it doesn't depend on it, it is not a requirement of the market.

it is not always profitable in the short run but it is profitable in the long run.

Rahul Sunny answered 2 years ago

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Which of the following statements about a monopoly firm are true? (Check all that apply.) It...

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