The major problem with an unregulated monopoly is that the monopolist will produce
A) less output and sell at a higher price than would be the case in perfect competition.
B) more output and sell at a higher price than would be the case in perfect competition.
C) more output and sell at a lower price than would be the case in perfect competition.
D) less output and sell at a lower price than would be the case in perfect competition.
E) the same output and sell at the same price as in perfect competition.

Question

Quizplus · Accepted Answer

An unregulated monopoly has no competition and therefore has the power to set the price and output level that maximizes their profit. This often leads to the production of less output at a higher price than would be the case in perfect competition, where firms are competing against each other to offer the best price and value to consumers.

The Major Problem with an Unregulated Monopoly Is That the Monopolist