A monopolistic industry will have lower output and higher prices than a competitive industry.

Question

Quizplus · Accepted Answer

In a monopolistic industry, there is only one supplier or producer, and therefore they have greater control over output and prices. The lack of competition allows them to charge higher prices and produce less output than in a competitive industry where multiple firms would be competing with each other, which would lead to lower prices and higher output.

A Monopolistic Industry Will Have Lower Output and Higher Prices