When compared with the purely competitive industry with identical costs of production, a monopolist will produce
A)more output and charge the same price.
B)more output and charge a higher price.
C)less output and charge a higher price.
D)less output and charge the same price.

Question

Quizplus · Accepted Answer

A monopolist will produce less output and charge a higher price compared to a purely competitive industry due to the lack of competition and the ability to control market prices.

When Compared with the Purely Competitive Industry with Identical Costs