Explain why each of the following statements is false. For each, write the correct statement. A monopolist maximizes profits when MC = P. The higher the price elasticity, the higher is a monopolist’s...

Explain why each of the following statements is false. For each, write the correct statement.

1. 
   

   A monopolist maximizes profits when MC = P.

   
   


2. 
   

   The higher the price elasticity, the higher is a monopolist’s price above its MC.

   
   


3. 
   

   Monopolists ignore the marginal principle.

   
   


4. 
   

   Monopolists will maximize sales. They will therefore produce more than perfect competitors and their price will be lower.