A monopoly
A)Maximizes profits at the output level where MR MC.
B)Produces less output than a competitive industry,ceteris paribus.
C)Charges the same price as a competitive industry,ceteris paribus.

Question

A monopoly
A)Maximizes profits at the output level where MR > MC.
B)Produces less output than a competitive industry,ceteris paribus.
C)Charges the same price as a competitive industry,ceteris paribus.

Quizplus · Accepted Answer

A monopoly produces less output than a competitive industry because it restricts output to maximize profits, leading to higher prices and lower quantities compared to a competitive market.

A Monopoly