which of the following is NOT true for a monopoly? it has direct competetors it is a price taker
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Which of the following statements is true of a monopolist? a. It will produce where price equals marginal cost. b. It is not a price taker. c. It is a price taker. d. It will set price below marginal revenue. e. None of these.
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Does a monopolist take the market price as given? Why or why not? No, because barriers to entry exist, a monopolist does not take the market price as given. No, a monopolist takes into account that its output decision can affect price, and its marginal revenue is not its price. No, a monopolist takes the market price as given because the monopolist faces potential competition from other firms, so the price charged must be competitive. No, a monopolist's marginal revenue is the given market price.
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