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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