A monopoly firm will sell ________output and charge a ________
Price than a perfectly competitive firm.
A)less; higher
B)more; higher
C)more; lower
D)less; lower

Question

Quizplus · Accepted Answer

A monopoly firm has the power to control the market price by restricting the quantity produced. Therefore, the firm will produce and sell less output and charge a higher price compared to a perfectly competitive firm, which has no control over market price and produces at the efficient level where price equals marginal cost.

A Monopoly Firm Will Sell ________Output and Charge a ________

A Monopoly Firm Will Sell Output and Charge a