Compared to the case of perfect competition, a monopolist is more likely to ?
Correct answer: D. all of the above
- A. charge a higher price
- B. produce a lower quantity of the product
- C. make a greater amount of economic profit
- D. all of the above
Explanation
A monopolist restricts output to raise price, so it generally charges more and produces less than a perfectly competitive industry. Because competition drives long-run economic profit toward zero, a monopolist is also more likely to earn positive economic profit.
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About Microeconomics
Individual consumers, firms and markets are examined through demand and supply, elasticity, consumer choice, production, costs, revenue and the determination of prices and output. The topic also covers market structures such as perfect competition, monopoly and oligopoly, plus market failure, externalities and the distinction between microeconomic decisions and economy-wide outcomes.
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