If a monopoly wants to sell a greater quantity of output,it must
A) lower its price.
B) raise its price.
C) tell consumers to buy more because it's a monopolist.
D) raise its marginal cost.
E) change its fixed costs.

Question

Quizplus · Accepted Answer

In order to sell a greater quantity of output, a monopoly must lower its price because as the price goes down, the quantity demanded goes up according to the law of demand. Since a monopoly is the sole producer in the market, it must adjust its price to increase its quantity sold.

If a Monopoly Wants to Sell a Greater Quantity of Output,it