A monopolist can:

Question

A monopolist can:

Quizplus · Accepted Answer

A monopolist has complete control over the market, so it can set the price at any level it wants. However, it cannot produce as much as it wants without affecting the price. As it increases production, it can drive down the price and decrease profits. A monopolist can also not provide discounts below market price because it would still be the only supplier in the market, so there is no competition to undercut. Finally, a monopolist does not need to consider the reactions of future competitors or firms because it has no competitors currently in the market.

A Monopolist Can