A monopolist restricts output and charges a higher price relative to what would occur if a market were perfectly competitive.

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A monopolist has market power, which allows them to restrict output and charge a higher price compared to a perfectly competitive market where no single firm has significant market power. In a perfectly competitive market, numerous firms compete to supply goods or services, which drives down prices and keeps output levels high.

A Monopolist Restricts Output and Charges a Higher Price Relative