Unlike a perfectly competitive firm, a monopoly: A. will charge the highest price it can on the...

Question:

Unlike a perfectly competitive firm, a monopoly:

A. will charge the highest price it can on the demand curve.

B. has a horizontal marginal revenue curve.

C. has an upward sloping total revenue curve.

D. faces a downward sloping demand curve.

E. faces a horizontal demand curve.

Monopoly:

A monopoly refers to a market situation that is characterized by a large number of buyers and a single seller. A single seller referred to as the monopolist enjoys complete control over the market and hence associated with consumer exploitation.

Answer and Explanation: 1

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  • The correct option is A. will charge the highest price it can on the demand curve.

A monopolist produces the quantity where its marginal cost is equal...

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What is a Monopoly in Economics? - Definition & Impact on Consumers

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Chapter 7 / Lesson 2
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Understand the meaning of a monopoly in economics and what it does. Also, know the characteristics of a monopoly and the different types of monopolies.


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