Determine whether the following statements about a single-price monopolist are TRUE OR FALSE.
Statement 1: When fixed cost is zero, the profit of the monopolist is the same as the producer surplus.
Statement 2: A monoplist will not produce the quantity corresponding to the segment of the linear demand curve that is price inelastic.
Statement 3: A monopolist will set a higher markup when he faces a demand that is relative less price elastic.

Question

Determine whether the following statements about a single-price monopolist are TRUE OR FALSE.

Statement 1: When fixed cost is zero, the profit of the monopolist is the same as the producer surplus.

Statement 2: A monoplist will not produce the quantity corresponding to the segment of the linear demand curve that is price inelastic.

Statement 3: A monopolist will set a higher markup when he faces a demand that is relative less price elastic.

Answer

Statement 1 : False ; Statement 2 : True; Statement 3: False

Answer

Statement 1 : True; Statement 2: False ; Statement 3 : True

Answer

Statement 1 : True ; Statement 2 : False; Statement 3: False

Answer

Statement 1 :True ; Statement 2 : True; Statement 3: True

Answer

Statement 1 : True ; Statement 2 : True; Statement 3: False

Crowdly