If a monopoly wishes to sell more output, it must:
A)find a more cost-effective way to produce its goods.
B)lower the price of its goods.
C)be experiencing economies of scale.
D)eliminate its existing competition.

Question

Quizplus · Accepted Answer

In a monopolistic market, the demand curve faced by the monopoly is downward sloping, meaning that in order to sell more output, the monopoly must lower the price of its goods. This is because the monopoly is the sole provider of the good or service in question, and thus, its pricing decisions directly affect the quantity it can sell.

If a Monopoly Wishes to Sell More Output, It Must