Even though the monopoly determines its own profit-maximizing output and therefore the appropriate price for its product, it is still at the mercy of market demand for its product.

Question

Quizplus · Accepted Answer

A monopoly's profit-maximizing output and price will ultimately depend on market demand for its product. If demand decreases, the monopoly may have to lower its price and output to maintain sales, potentially impacting its profit.

Even Though the Monopoly Determines Its Own Profit-Maximizing Output and Therefore