A monopolist is a price maker who will lose some business if the price is increased.

Question

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A monopolist has the power to set the price of their product since they are the only player in the market. However, increasing the price too high may lead to some customers seeking alternative products, causing the monopolist to lose some business. Therefore, they must consider the trade-off between higher prices and lost customers.

A Monopolist Is a Price Maker Who Will Lose Some