When comparing a monopoly outcome to a perfectly competitive outcome, the monopolist produces _____ and charges a _____ price.
A) more; higher
B) less; higher
C) less; lower
D) more; lower

Question

Quizplus · Accepted Answer

In a monopoly, the monopolist restricts output to increase prices, thus producing less and charging a higher price compared to a perfectly competitive market where firms produce where price equals marginal cost, leading to more output and lower prices.

When Comparing a Monopoly Outcome to a Perfectly Competitive Outcome