If the monopolist charges a high price:it will always earn more profits than if it had set a lower price.the quantity sold will be less than if it had set a lower price.it can keep other firms from entering the market.
A)III only
B)I and II only
C)II only
D)I and III only

Question

Quizplus · Accepted Answer

The quantity sold will indeed be less than if it had set a lower price due to the inverse relationship between price and quantity demanded in most markets. Charging a high price does not guarantee higher profits due to potential decreases in quantity sold, and it may not effectively prevent other firms from entering the market if those firms can offer competitive prices or better value.

If the Monopolist Charges a High Price:it Will Always Earn