The monopolist is always constrained by:
A) the amount demanders are willing to buy at any given price.
B) his production capacity.
C) the barriers to entry.
D) government regulation.

Question

Quizplus · Accepted Answer

The monopolist is constrained by the amount demanders are willing to buy at any given price. This is because the monopolist is the sole supplier in the market and must set a price that balances the quantity demanded with their production capacity. Note that while the other choices may also be factors, they are not the primary constraint on the monopolist's behavior.

The Monopolist Is Always Constrained By