Relative to a profit-maximizing competitively organized industry that is producing 3,000 units of output at a price of $5 per unit, a monopoly under the same circumstances would produce ________ units of output and charge a price of ________ per unit.
A) 3,000; $5
B) more than 3,000; more than $5
C) less than 3,000; less than $5
D) less than 3,000; more than $5

Question

Quizplus · Accepted Answer

A monopoly would produce less than the competitive industry due to its ability to influence price by restricting output, and it would charge a higher price per unit to maximize profits.

Relative to a Profit-Maximizing Competitively Organized Industry That Is Producing