Relative to a profit-maximizing monopolized industry that is producing 8,000 units of output at a price of $10 per unit, a competitively organized industry under the same circumstances would produce ________ units of output and charge a price of ________ per unit.
A) 8,000; $10
B) less than 8,000; less than $10
C) more than 8,000; less than $10
D) less than 8,000; more than $10

Question

Quizplus · Accepted Answer

In a competitive market, firms produce more and charge a lower price compared to a monopolized market. This is because competition drives down prices and increases output to meet demand, unlike a monopoly that restricts output to increase prices and maximize profits.

Relative to a Profit-Maximizing Monopolized Industry That Is Producing 8,000