Question

Because a monopolist is the sole producer in its market, it can necessarily alter the price of its good i. without affecting the quantity sold. ii. without affecting its average total cost. iii. by adjusting the quantity it supplies to the market.

Answer 1

The correct answer to this question is option iii) by adjusting the quantity it supplies to the market.

Step-by-step explanation:

Monopoly is that form of market where there are large number of buyers but sellers are very few, as the barriers to enter in the market is very high. Sellers in this market are price maker , they can easily alter the prices of goods and services because of the less competition in the market, so it becomes really easy for them to manipulate the supply of goods and services . If a supplier decides he or she wants to raise the price of goods, it can easily be done by shorting the supply of that good in the market , which will lead to the increase in the demand by consumer and when the demand for a good exceeds the supply, then prices of goods increases.

Answer 2

Answer:iii, by adjusting the quantity it supply to the market.

Explanation:Since monopoly company has the control of supply of commodity or service, it can manipulate the market by short supply that commodity or service and enhance a panic or an increase in demand which result to an increase in price of a commodity or service to the final users. For example Microsoft and Google they can manipulate the market by charging the prices they want since they are the soul providers.