If a monopoly wishes to sell more output,it must:
A) find a more cost effective way to produce its goods.
B) lower the price.
C) be in the economies of scale range of its ATC.
D) eliminate its existing competition.

Question

Quizplus · Accepted Answer

A monopoly can only sell more output by lowering the price because it is the sole provider of the goods or services, and it has market power. Lowering the price will create more demand and increase the quantity sold. The other choices may help the monopoly become more efficient or reduce costs, but they do not directly address the issue of increasing output.

If a Monopoly Wishes to Sell More Output,it Must