A profit-maximising monopoly's price is

Question

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A profit-maximising monopoly will choose a price and quantity combination that maximises its profits, which typically involves choosing a higher price than what would prevail if the industry was perfectly competitive. This is because a monopoly has market power and can restrict output in order to charge a higher price. In contrast, in a perfectly competitive industry, firms are price takers and must accept the market price, which is lower than what a monopoly would charge.

A Profit-Maximising Monopoly's Price Is