True or False? a

a. When a monopoly is maximizing its profits, price is greater than marginal cost

True

For a monopoly market, P> Marginal revenue, and as marginal cost = marginal revenue at monopoly market, , P> Marginal cost.

b. For a monopoly producing a certain amount of output, price is less than marginal revenue.

False

In such case P> Marginal revenue.

c. When a monopoly is maximizing its profits, marginal revenue equals marginal cost.

True,

d. Ironically, if a government regulator sets a fixed price for a monopoly lower than the unregulated price, it is typically raising the marginal revenue of selling more output.

True

In such case there is no fear of competition or spoiling of market.

e. In the United States, government regulation of cable TV cut down the price of premium channels to average cost.

False

Rates are never regulated by LFAs for any tier of service beyond basic tier services.

f. When consumers have many options, monopoly markup is lower.

True

Competition reduces the monopoly

g. A patent is a government-created monopoly

True.