The monopolist's outcome happens at a:
A)lower price than the perfectly competitive one.
B)higher 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 higher price than the perfectly competitive one. This is because the monopolist has the power to control the price in the market due to the absence of close substitutes. In contrast, in a perfectly competitive market, firms are price takers, and the price is determined by market forces of supply and demand, which results in a lower price.

The Monopolist's Outcome Happens at A