Compared to a perfectly competitive industry,a single-price monopoly produces
A) more output.
B) less output.
C) the same output.
D) some amount that might be more, less, or the same depending on whether the monopoly's marginal revenue curve lies above, below, or on its demand curve.
E) some amount that might be more, less, or the same depending on whether the monopoly's marginal cost curve lies above, below, or on its marginal revenue curve.

Question

Quizplus · Accepted Answer

A monopoly restricts output to maximize profits, while a perfectly competitive industry produces an output level where marginal cost equals price. Therefore, a monopoly produces less output than a perfectly competitive industry.

Compared to a Perfectly Competitive Industry,a Single-Price Monopoly Produces