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The ultimate market constraint (limit) on the amount of pricing power that can be exercised by a monopoly firm is the _______

User Offirmo
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Answer:

Number of units it can sell and the number of customers it can serve

Step-by-step explanation:

The ultimate market constraint (limit) on the amount of pricing power that can be exercised by a monopoly firm is the number of units it can sell and the number of customers it can serve.

Generally.

The price-setting ability of a monopolist faces two kinds of constraints:

1. Number of Units: The monopolist's price setting ability is limited by capacity as cannot sell more than a given quantity of its products

2. Number of Customers: The monopolist is additionally unable to serve more than a given number of consumers.

These 2 factors constrains the pricing power of the monopolist

User Denise Mauldin
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