When compared to firms in perfect competition,monopolists tend to charge _____
A)lower prices and offer lower quantities of output.
B)higher prices and offer lower quantities of output.
C)lower prices and offer higher quantities of output.
D)higher prices and offer higher quantities of output.
E)higher prices but offer the same quantity of output.

Question

Quizplus · Accepted Answer

Monopolists have the ability to set higher prices due to lack of competition. They may also produce lower quantities of output to maintain higher prices. This is in contrast to firms in perfect competition, which would have to offer lower prices and higher quantities of output to remain competitive.

When Compared to Firms in Perfect Competition,monopolists Tend to Charge