In comparing monopoly to a perfectly competitive market,which of the following is false?
A)Market price will be higher under monopoly.
B)Equilibrium quantity will be higher under perfect competition.
C)Consumers will be worse off with the monopoly.
D)Employment will be higher under monopoly.

Question

Quizplus · Accepted Answer

Employment is not necessarily higher under monopoly as monopolies have less incentive to produce more output, and therefore, may hire fewer workers than a competitive market. Choices A, B, and C are true because a monopoly has the ability to charge higher prices due to lack of competition and restricts output, resulting in a lower equilibrium quantity, and consumers being worse off.

In Comparing Monopoly to a Perfectly Competitive Market,which of the Following