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Answer to Problem 6MCQ
(e) An inefficiency and low quantity of output.
Explanation of Solution
Monopolist charge higher prices due to a lack of competition which reduces
In the monopoly,
In a monopoly market, monopolists earn a higher profit than in a
In a monopoly, the monopolist charges a higher price due to a lack of competition. Hence, option (c) is incorrect.
In both a monopoly market and a perfectly competitive market, firms incur the same input cost so option (d) is incorrect.
In a monopoly market, there is a single seller and a large number of buyers, and the seller charges a higher price which reduces the quantity and gives rise to inefficiency and deadweight loss.
Chapter 62 Solutions
Krugman's Economics For The Ap® Course
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