-In the figure above, compared to a perfectly competitive industry with the same costs, a single-price, unregulated monopoly will raise the price by
A) $2.00 per unit.
B) $4.00 per unit.
C) $6.00 per unit.
D) $8.00 per unit.

Question

-In the figure above, compared to a perfectly competitive industry with the same costs, a single-price, unregulated monopoly will raise the price by
A) $2.00 per unit. 
B) $4.00 per unit. 
C) $6.00 per unit. 
D) $8.00 per unit.

Quizplus · Accepted Answer

A single-price, unregulated monopoly sets a higher price than a perfectly competitive industry due to its market power, typically resulting in a price increase. The specific increase depends on the demand and cost curves, but in this scenario, it is given as $4.00 per unit.

-In the Figure Above, Compared to a Perfectly Competitive Industry