A monopolist produces
A)more than the socially efficient quantity of output but at a higher price than in a competitive market.
B)less than the socially efficient quantity of output but at a higher price than in a competitive market.
C)the socially efficient quantity of output but at a higher price than in a competitive market.
D)possibly more or possibly less than the socially efficient quantity of output, but definitely at a higher price than in a competitive market.

Question

Quizplus · Accepted Answer

A monopolist has market power and can charge higher prices, which leads to a decrease in quantity demanded. This results in the monopolist producing less than the socially efficient quantity of output. Therefore, the monopolist produces less than the socially efficient quantity of output but charges a higher price than in a competitive market.

A Monopolist Produces