True or False:
1. The marginal revenue curve for a monopolist lies below the demand curve.
2. For a monopoly to get revenue from marginal customers, the firm has to lower the price so that marginal revenue is always less than price.
3. When a monopolist cuts prices to attract new customers, its existing customers benefit.
4. Along the inelastic portion of the demand curve, when the price falls, total revenue rises, so that marginal revenue is positive.
5. Along the elastic portion of the demand curve, when the price falls, total revenue rises, so that marginal revenue is positive.
6. A monopolist will never knowingly operate in the inelastic portion of its demand curve, because increased output will lead to lower total revenue and higher total cost in that region.
7. For a monopolist, the profit-maximizing price is indicated by the height of the demand curve at the profit-maximizing quantity of output.