5.) Indicate, whethe eoch of the follwing statements is true or false, and explain spour answer. A) If a monopolist is producing a level of outpst at which demund is inelostic, the firm is not maximizing profits, and increasing outhut will decrease total revenue B.) Lunon a monupolist moximizes pofits, the price is greater thon the marg.nal cost of producing the output. This means thot consumers are willing to pay more for additional whits of the product than these additional units cost to produce. Trus, the monopolist should prodice and sell additional units of output. D). In a monopolisticallay comperitive markes. a firm nos ma-ket paicer because it prodibes a differentiated prodict. This means that the firm earis positive economic profit in the long run..

1. 5.) Indicate, whethe eoch of the follwing statements is true or false, and explain spour answer.
A) If a monopolist is producing a level of outpst at which demund is inelostic, the firm is not
maximizing profits, and increasing outhut will decrease total revenue B.) Lunon a monupolist
moximizes pofits, the price is greater thon the marg.nal cost of producing the output. This means
thot consumers are willing to pay more for additional whits of the product than these additional
units cost to produce. Trus, the monopolist should prodice and sell additional units of output. D).
In a monopolisticallay comperitive markes. a firm nos ma-ket paicer because it prodibes a
differentiated prodict. This means that the firm earis positive economic profit in the long run.