A monopolist is a:
A) price taker.
B) price setter.
C) cost maximizer.
D) quantity taker.

Question

Quizplus · Accepted Answer

A monopolist is a firm with market power, meaning that it has the ability to set prices and influence the quantity of goods or services that are supplied to the market. Therefore, the correct choice is B, price setter. The other choices are incorrect; a price taker is a firm that cannot influence market prices and must accept them as given, a cost maximizer is a firm that aims to maximize profits by minimizing costs, and a quantity taker is a firm that must accept the market price if it wishes to sell its desired quantity of output.

A Monopolist Is A