Relative to a perfectly competitive market with the same cost and demand, a single-price monopolist produces ________ output and has a ________ price.
A) more; higher
B) less; lower
C) more; lower
D) less; higher

Question

Quizplus · Accepted Answer

A single-price monopolist produces less output and charges a higher price compared to a perfectly competitive market due to its market power and the downward-sloping demand curve it faces.

Relative to a Perfectly Competitive Market with the Same Cost