Question

Compared to a market with perfect competition, a monopoly has A. lower prices and fewer goods. B. higher prices and fewer goods. C. lower prices and more goods. D. higher prices and more goods.

gradpiont answer is B

Answer 1

Hello!

A monopoly has B. higher prices and fewer goods.

This is because monopolies control the market. For example, if one single company were to manufacture and sell all cellphones, they could sell them for much higher prices because they have no competitors. Additionally, they would make fewer cellphones so that more people demand them.

I hope this helps you! Have a lovely day!

- Mal