If a monopoly wants to sell a larger quantity,it must
A) set a higher price.
B) maintain the current price.
C) set a lower price.
D) implement new technology.
E) increase the barrier to entry that protects it.

Question

Quizplus · Accepted Answer

Monopolies have control over the market and therefore can adjust the quantity they produce and sell to maximize profit. To increase the quantity sold, they may need to lower the price to entice more customers to buy their products. If they set a higher price, it may deter customers and lead to a decrease in sales. Therefore, setting a lower price is the best choice for a monopoly that wants to sell a larger quantity.

If a Monopoly Wants to Sell a Larger Quantity,it Must