A monopoly realizes larger profits than a comparable competitive market by charging a _______ price and producing _______ output.
A) Higher;the same level of
B) Higher;more
C) Lower;more
D) Higher;less

Question

Quizplus · Accepted Answer

A monopoly can charge a higher price due to lack of competition and hence limit its output in order to maximize profits. Therefore, the correct choice is higher price and less output.

A Monopoly Realizes Larger Profits Than a Comparable Competitive Market