Which of the Following Statements Is False

Multiple Choice

Which of the following statements is false?

A) A competitive firm maximizes profit when marginal revenue equals marginal cost.
B) When a competitive firm increases output by one unit, revenue increases by an amount equal to market price.
C) A monopoly and a competitive firm use a similar rule for setting output to maximize profit.
D) When a monopoly increases output by one unit, revenue increases by an amount less than market price.
E) A monopoly maximizes profit when price equals marginal cost.