Given the same cost data,a pure monopolist producer will charge:

Question

Quizplus · Accepted Answer

As a pure monopolist, the producer has the ability to control the price and output level, unlike a pure competitive industry. Therefore, they can charge a higher price and produce a smaller output since there are no close substitutes for their product, so demand will not significantly decrease at a higher price. In contrast, a purely competitive industry must accept the market price and produce at that level because any attempt to raise the price will cause consumers to switch to another supplier.

Given the Same Cost Data,a Pure Monopolist Producer Will Charge