Figure 11-1
-Is the monopolist supply decision more complicated than that of competitive supply?
A)Yes, because the monopolist can choose its price, and the perfect competitor cannot.
B)No, because they are both price takers.
C)No, because the market determines the quantity for the monopolist.
D)No, because the market determines the price for both firms.

Question

Figure 11-1 
-Is the monopolist supply decision more complicated than that of competitive supply?
A)Yes, because the monopolist can choose its price, and the perfect competitor cannot. 
B)No, because they are both price takers. 
C)No, because the market determines the quantity for the monopolist. 
D)No, because the market determines the price for both firms.

Quizplus · Accepted Answer

A monopolist has the power to choose its price, whereas a perfectly competitive firm is a price taker and must accept the market price. Therefore, the monopolist's supply decision is more complicated than that of a competitive firm.

Figure 11-1 -Is the Monopolist Supply Decision More Complicated Than That of Than