In contrast to perfect competition, a monopoly:
A) produces more at a lower price.
B) produces where MR MC.
C) may have lower economic profits in the long run.
D) produces less at a higher price.

Question

In contrast to perfect competition, a monopoly:
A) produces more at a lower price.
B) produces where MR > MC.
C) may have lower economic profits in the long run.
D) produces less at a higher price.

Quizplus · Accepted Answer

A monopoly produces less at a higher price compared to perfect competition because it is the sole producer and can set prices above marginal cost, leading to reduced output and higher prices.

In Contrast to Perfect Competition, a Monopoly