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 the above are correct.

Question

Quizplus · Accepted Answer

In the long run, a monopoly restricts its output in order to maintain a higher price and increase its profit margin. This is because it has control over the market and has no competition to keep prices in check. Additionally, a monopoly can produce at less than minimum average cost due to economies of scale and lack of competition. Thus, all of the given choices are correct.

Compared to Perfect Competition, Monopoly in the Long Run