Unlike perfectly competitive firms,monopolists can control
A)how much of the good to produce
B)what inputs to use in production
C)its plant size
D)the price charged per unit of output
E)the quality of inputs used in production

Question

Quizplus · Accepted Answer

Monopolists have the power to set the price of their product since they do not face any competition. They can charge a higher price than in a perfectly competitive market, resulting in higher profits. This control over the price charged per unit of output is a distinctive feature of monopolies. While they may have some control over inputs and plant size, it is not as significant as their ability to control prices.

Unlike Perfectly Competitive Firms,monopolists Can Control