In contrast with a firm in a competitive market, a monopoly is able to control
A)input costs.
B)price.
C)profits.
D)demand.
E)all aspects of its operation.

Question

Quizplus · Accepted Answer

A monopoly is the sole supplier in the market, and therefore has control over the price it charges for its product. It can set a price above the competitive level to maximize profits. However, a monopoly may not necessarily have control over input costs, demand, or all aspects of its operation.

In Contrast with a Firm in a Competitive Market, a Monopoly