Asked by Andrea Lopez on May 14, 2024
Verified
A monopolist responds to an increase in demand by _____ price and _____ output.
A) increasing;decreasing
B) increasing;increasing
C) decreasing;increasing
D) decreasing;decreasing
Demand
The desire and willingness of consumers to purchase a particular good or service at various prices.
- Assess the consequences of demand variations on the decision-making processes regarding prices and outputs in monopolistic markets.
Verified Answer
LT
Laura ThompsonMay 21, 2024
Final Answer :
B
Explanation :
A monopolist responds to an increase in demand by increasing both price and output to maximize profits.
Learning Objectives
- Assess the consequences of demand variations on the decision-making processes regarding prices and outputs in monopolistic markets.