Asked by Mojeed George on Jun 11, 2024
Verified
The monopolist often charges its customers _______ prices and provides ________ service than it would if it had competitors.
A) higher;better
B) higher;poorer
C) lower;better
D) lower;poorer
Monopolist
An entity that is the sole provider of a particular good or service in a market, possessing significant market power.
Competitors
Entities that are in the same industry and vie for the same customers or market share.
- Investigate the influence of monopolistic market structures on price setting and output quantities.
Verified Answer
BJ
Brigham JacobsonJun 17, 2024
Final Answer :
B
Explanation :
A monopolist can charge higher prices because there are no competitors to offer lower prices. They can also provide poorer service because customers have no alternatives to turn to. Therefore, the monopoly holder is not incentivized to provide better service or lower prices.
Learning Objectives
- Investigate the influence of monopolistic market structures on price setting and output quantities.