When Apple watches were first introduced they were so revolutionary that Apple had a monopoly over the market.
Assume demand for Apple watches is linear and Apple sell a quantity that maximises profit.
Which of the following statements are true:
a Apple's marginal revenue curve lies beneath their demand curve.
b The price Apple sells its watches for would be determined by the demand for the watches.
c The maximum profit for Apple could be calculated as marginal revenue minus marginal cost.
d Apple is a price maker.