The monopolist's outcome happens at a:
A)lower quantity than the perfectly competitive one.
B)lower price than the perfectly competitive one.
C)higher quantity than the perfectly competitive one.
D)None of these statements is true.

Question

Quizplus · Accepted Answer

The monopolist's outcome happens at a lower quantity than the perfectly competitive market because the monopolist restricts the output to increase the price to maximize their profits, while in a perfectly competitive market, firms cannot influence the price, so they produce at a higher quantity. Therefore, the monopolist's quantity is lower than the perfectly competitive market.

The Monopolist's Outcome Happens at A