Compared to perfect competition, monopoly

Question

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Monopoly provides less output compared to perfect competition because it has the ability to restrict output in order to increase prices and profits. Monopolies also charge a higher price because they have market power, allowing them to set prices above the marginal cost of production. Lastly, monopolies can result in higher cost production and inefficiency because they do not face competition to keep their costs low or improve efficiency.

Compared to Perfect Competition, Monopoly