Which of the following is true of a monopolist?
A)A monopolist takes the price of the product as given and produces as much output as possible.
B)A monopolist can price the product at any price,regardless of demand.
C)A monopolist can choose to produce at any price along the market demand curve.
D)A monopolist prices products at the highest point on the demand curve.

Question

Quizplus · Accepted Answer

A monopolist can indeed choose to produce at any price along the market demand curve, as they face the market demand curve directly. This means they can set the price at different levels and adjust the quantity supplied accordingly, unlike in perfect competition where firms are price takers. Choices A, B, and D are incorrect because a monopolist does not take the price as given (A), cannot set prices completely irrespective of demand (B), and does not necessarily price products at the highest point on the demand curve but rather where profit is maximized (D).

Which of the Following Is True of a Monopolist