Question

When a monopolist increases the amount of output that it produces and sells, the price of its output Group of answer choices stays the same. increases. decreases. may increase or decrease depending on the price elasticity of demand.

Answer 1

Decreases

Step-by-step explanation:

Monopolist is the sole seller of a good or service in a market. Eg : Indian Railways

It has a downward sloping demand curve, implying price & quantity demanded are inversely related. So, more quantity can be sold at lower prices, & higher price leads to less quantity sold.

Hence : When a monopolist increases the amount of output that it produces and sells, the price of its output Decreases.