Which of the following results will not occur in a monopolistic market?
A)The monopolist will maximize profits by setting a price that's higher than marginal cost.
B)The price will be higher than what would prevail in a competitive market.
C)In monopoly pricing, income is, in effect, transferred from consumers to the monopolist.
D)The output level will be higher than in a competitive market.

Question

Quizplus · Accepted Answer

In a monopolistic market, the output level is typically lower than in a competitive market because the monopolist restricts output to raise prices and maximize profits, unlike in a competitive market where firms produce at a level where price equals marginal cost.

Which of the Following Results Will Not Occur in a Monopolistic