When compared to a perfectly competitive market,a single-price monopoly with the same costs produces ________ output and charges ________ price.
A) a larger; a lower
B) a smaller; a lower
C) the same; a higher
D) a smaller; a higher
E) a smaller; the same

Question

Quizplus · Accepted Answer

A single-price monopoly has market power and can control the price and output. Therefore, compared to a perfectly competitive market, a single-price monopoly produces a smaller output and charges a higher price.

When Compared to a Perfectly Competitive Market,a Single-Price Monopoly with the Same