Compared to an efficient perfectly competitive industry, the monopolist will
A) produce less output at a higher total cost.
B) produce less output and charge a higher price.
C) produce more output at a higher price and higher profit.
D) produce more output at a lower price.

Question

Quizplus · Accepted Answer

A monopolist has market power which allows them to charge higher prices and produce less output compared to a perfectly competitive industry. This is because a monopolist restricts output in order to charge higher prices and increase profits.

Compared to an Efficient Perfectly Competitive Industry, the Monopolist Will