The Standard Monopoly Model Eliminates the Monitoring Problem by Assuming

Multiple Choice

The standard monopoly model eliminates the monitoring problem by assuming that:

A) the owner does not maximize profit.
B) marginal cost is zero, and so the output at which profit is maximized is the same as the output at which sales revenues are maximized.
C) the owner of the firm makes all the decisions.
D) the owner of the firm has no control over decisions.