Assume a monopoly confronts the same costs and demand as a competitive industry.In this case,the monopolist produces
A)The same output and charges the same price as the competitive industry.
B)More output and charges a higher price than the competitive industry.
C)Less output and charges a lower price than the competitive industry.
D)Less output and charges a higher price than the competitive industry.

Question

Quizplus · Accepted Answer

A monopolist in this scenario would have market power, which means they can charge a higher price and produce less output than a competitive industry. This allows them to maximize profits.

Assume a Monopoly Confronts the Same Costs and Demand as a Competitive