Absent an ability to price discriminate,if a monopoly wants to sell more output,it must
A)raise its price
B)lower its price
C)increase barriers to entry
D)obtain government permission
E)negate its patent protection

Question

Quizplus · Accepted Answer

If a monopoly wants to sell more output, it could not raise its price as it may lead to reduced demand and lower sales. Lowering price could increase its sales and revenue, as demand may increase due to the lower price. However, it could also negatively impact the monopoly's profits. Increasing barriers to entry or obtaining government permission may not necessarily lead to increased sales. Negating patent protection would not be a viable option either, as it would encourage competition and reduce the monopoly's market share.

Absent an Ability to Price Discriminate,if a Monopoly Wants to Sell