A monopolist in the product market will most likely

Question

Quizplus · Accepted Answer

A monopolist has market power and can set the price of their product higher than the competitive market. As a result, they will produce less output and hire fewer workers than the competitive market. This is because the monopolist can maximize profits by producing where marginal revenue equals marginal cost, which will typically involve producing less than the competitive level of output. With fewer workers needed to produce the lower quantity, the monopolist will hire fewer workers than in a competitive market.

A Monopolist in the Product Market Will Most Likely