A monopolist charges a price that is ________ and produces ________ than a perfect competitor.
A) lower; less
B) higher; less
C) higher; more
D) lower; more

Question

Quizplus · Accepted Answer

A monopolist has market power and is the sole producer in the market, so it can charge a higher price than a perfect competitor that faces many competitors who offer similar products. However, because the monopolist faces less competition, it can produce less than a perfect competitor would.

A Monopolist Charges a Price That Is ________ and Produces