Compared to perfect competition, monopoly in the long run
A)restricts output.
B)charges a higher price.
C)produces at less than minimum average cost.
D)All of these responses are correct.

Question

Quizplus · Accepted Answer

Monopoly in the long run restricts output, charges a higher price and produces at less than minimum average cost as there are no close substitutes for the product, and the firm has the power to set the price and control the output. This leads to inefficiencies in the market and higher prices for consumers.

Compared to Perfect Competition, Monopoly in the Long Run