Even with market power, monopolists cannot achieve any level of profit they desire because they will sell lower quantities at higher prices.

Name: Even with market power, monopolists cannot achieve any level of profit they desire because they will sell lower quantities at higher prices.
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Question

Quizplus · Accepted Answer

Monopolists are constrained by the demand curve for their product; as they raise prices to increase profits, the quantity demanded decreases, which limits the level of profit they can achieve.

Even with Market Power, Monopolists Cannot Achieve Any Level of Profit