The most a monopolist can sell at any given price is:
A) the amount he alone can supply the market with.
B) the amount demanders are willing to buy at that price.
C) constrained by the availability of inputs.
D) less than if it were a perfectly competitive market.

Question

Quizplus · Accepted Answer

As a monopolist is the sole supplier in the market, he can only sell the amount that demanders are willing to buy at any given price. If the monopolist tries to sell more than what the demanders are willing to buy, he will not be able to sell all his output and will have to lower his price to clear the market. Therefore, the amount the monopolist can sell is constrained by the demand for his product at any given price.

The Most a Monopolist Can Sell at Any Given Price