Microeconomics 20th Edition by McConnell, Sean Flynn, Stanley Brue

Exercise 5

Critically evaluate and explain each statement:
a.Because they can control product price, monopolists are always assured of profitable production by simply charg­ing the highest price consumers will pay.
b.The pure monopolist seeks the output that will yield the greatest per-unit profit.
c.An excess of price over marginal cost is the market's way of signaling the need for more production of a good.
d.The more profitable a firm, the greater its monopoly power.
e.The monopolist has a pricing policy; the competitive producer does not.
f.With respect to resource allocation, the interests of the seller and of society coincide in a purely competitive market but conflict in a monopolized market.