A monopoly
A) must determine the price it will charge.
B) cannot price discriminate because such a pricing strategy is illegal in Australia.
C) has no control over the price it can charge.
D) faces extensive competition from firms making close substitutes.
E) Both answers B and C are correct.

Question

Quizplus · Accepted Answer

A monopoly has the power to set the price for its product or service because it has no competitors. It can charge a higher price and still sell its goods because consumers have no other options.

A Monopoly