If an unregulated monopolist operates in a market, then:
A)customers will pay higher prices than if the market was competitive.
B)customers will purchase larger units of output than if the market was competitive.
C)society will be allocating its resources more efficiently than if the market was competitive.
D)the monopolist will be incurring an economic loss.
E)the monopolist will be producing at a point where price is lower than marginal cost.

Question

Quizplus · Accepted Answer

An unregulated monopolist has the ability to charge higher prices due to their lack of competition. Customers have little choice but to purchase from the monopolist, allowing them to charge whatever price they can get away with. This results in higher prices for consumers compared to a competitive market.

If an Unregulated Monopolist Operates in a Market, Then