Which statement is TRUE?

A) Instead of applying the marginal decision rule,monopoly firms just set the price as high as possible.
B) If demand is downward sloping,P = MR.
C) If demand is downward sloping,P = ATC.
D) If demand is downward sloping,P > MR.

Marginal Decision Rule

A principle used in economics and decision-making that recommends comparing the additional benefits of a decision or action to its additional costs.

Downward Sloping

Characteristic of a graph indicating that as one variable increases, the other variable decreases, common in demand curves.

Demand

The quantity of a particular good or service that consumers are willing and able to purchase at various prices.