A monopolist ________ if it chooses to sell fewer units of output.
A) can increase the price
B) must decrease the price
C) cannot change the price
D) can set its price wherever it desires

Question

Quizplus · Accepted Answer

A monopolist can increase the price if it chooses to sell fewer units of output because by reducing the quantity supplied, it can exploit its market power to raise the price, given the downward-sloping demand curve it faces.

A Monopolist ________ If It Chooses to Sell Fewer Units