If an industry could be organized either perfectly competitively or as monopoly,a monopoly would
A)produce less output.
B)produce where P MC.
C)charge higher prices.
D)All of the above

Question

If an industry could be organized either perfectly competitively or as monopoly,a monopoly would
A)produce less output.
B)produce where P > MC.
C)charge higher prices.
D)All of the above

Quizplus · Accepted Answer

A monopolist will produce less output than a perfectly competitive industry due to their ability to control prices and maximize profits. Additionally, a monopolist will charge higher prices than a perfectly competitive industry, creating a market where P > MC. Therefore, all the options A, B and C are correct.

If an Industry Could Be Organized Either Perfectly Competitively or as Monopoly,a