When compared to firms in perfect competition, monopolists tend to charge __________ prices and offer __________ quantities of output.
A)lower; lower
B)higher; lower
C)lower; higher
D)higher; higher
E)higher; the same

Question

Quizplus · Accepted Answer

Monopolists have the ability to restrict output and charge higher prices because they do not face competition. In contrast, firms in perfect competition have no market power and are price takers, which leads to lower prices and higher output.

When Compared to Firms in Perfect Competition, Monopolists Tend to Charge