Which of the following best describes a firm that is a monopolist?
A) The firm will definitely make an economic profit in the short run.
B) The firm will produce a smaller quantity of output than what would be best from the viewpoint of ideal economic efficiency.
C) The firm can charge whatever it wants for its product, since consumers have no alternatives.
D) The additional revenue that can be generated from an increase in output will exceed the firm's price.

Question

Quizplus · Accepted Answer

A monopolist typically produces less output than would be considered ideal for economic efficiency, as it restricts output to increase prices and maximize profits.

Which of the Following Best Describes a Firm That Is