If pizza used to be produced in a competitive price-taker market, and now the pizza market has become a monopoly, we can expect
A) less pizza to be sold at a higher price.
B) more pizza to be sold at a higher price.
C) less pizza to be sold at a lower price.
D) more pizza to be sold at a lower price.
E) the same amount of pizza to be sold at the same price.

Question

Quizplus · Accepted Answer

In a monopoly, the single seller has market power and can restrict output to raise prices, leading to less pizza being sold at a higher price compared to a competitive market.

If Pizza Used to Be Produced in a Competitive Price-Taker