Asked by Trap muzik Blossom on Jun 11, 2024
Verified
In the short run a pure monopolist will charge the highest price the market will bear for its product.
Pure Monopolist
A market condition where a single firm has exclusive control over the supply of a product or service, and no close substitutes exist.
Short Run
The short run in economics is a period during which at least one input, such as plant size, is fixed and cannot be changed.
- Understand the basic concepts of monopoly, including the ability of a monopolist to set prices.
Verified Answer
LR
Lizette RonquilloJun 16, 2024
Final Answer :
False
Explanation :
In the short run, a pure monopolist will set prices based on the demand and elasticity of the market, aiming to maximize profits rather than simply charging the highest possible price. Charging the highest price the market will bear might not be the profit-maximizing strategy if it significantly reduces the quantity sold.
Learning Objectives
- Understand the basic concepts of monopoly, including the ability of a monopolist to set prices.
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