A monopolist would charge ____ prices and produce ____ output than would exist under perfect competition.
A) higher; less.
B) lower; more.
C) higher; more.
D) the same; the same.

Question

Quizplus · Accepted Answer

A monopolist has the ability to set higher prices than would exist under perfect competition because they have no competition for their product. In order to maximize profits, a monopolist will produce less output than would exist under perfect competition, which would lead to higher prices.

A Monopolist Would Charge ____ Prices and Produce ____ Output

A Monopolist Would Charge Prices and Produce Output