A monopoly:
A) can increase price and increase output at the same time.
B) can charge any price it wants and still sell all of its output.
C) can sell any output it produces provided it accepts the market price.
D) must lower price in order to increase output.

Question

Quizplus · Accepted Answer

Monopolies face a downward-sloping demand curve, meaning that in order to sell more output, they must lower the price. This is because, unlike in perfect competition where firms are price takers, a monopoly has market power that allows it to influence the price of its product.

A Monopoly