Other things being equal, the monopolist will

Question

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Monopolists have market power and face a downward-sloping demand curve, which means they can charge a higher price for their product. As a result, they produce less output and hire fewer workers than a perfectly competitive industry would. This is because their marginal revenue (additional revenue from selling one more unit) is less than the price they charge, so it is not profitable for them to produce as much as a perfectly competitive industry would. Consequently, they also hire fewer workers since they need fewer inputs to produce their smaller output level.

Other Things Being Equal, the Monopolist Will