Monopoly output is relatively lower than a competitive market output as resources remain unutilized under the former.

Question

Quizplus · Accepted Answer

This is because in a monopoly market, there is no competition, which means the monopolist can restrict output in order to keep prices high. This leads to unutilized resources that could have been used if the market was competitive. In a competitive market, on the other hand, resources are fully utilized as firms compete to produce more and drive down prices.

Monopoly Output Is Relatively Lower Than a Competitive Market Output