Compared to a firm under perfect competition,a monopolist ________.
A) charges less and produces less
B) charges less and produces more
C) charges more and produces less
D) charges more and produces more

Question

Quizplus · Accepted Answer

A monopolist has the ability to set its own price and quantity produced, whereas a firm operating under perfect competition is a price taker and must accept the market price. Therefore, a monopolist will charge a higher price (compared to the market price) and produce a lower quantity (compared to the quantity that would be produced under perfect competition).

Compared to a Firm Under Perfect Competition,a Monopolist ________