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Question
A monopolist is price maker:
Options
True
False
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Solution
This statement is True.
Explanation:
A monopolist is a price maker because, as the only seller in the market, the monopolist has the authority to establish the price of the commodity. Because there are no competitors, the monopolist can control the price by altering the supply of the commodity.
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RELATED QUESTIONS
Match the following and select the correct option.
| Column I | Column II | ||
| (i) | Perfectly elastic demand | (A) | Oligopoly |
| (ii) | Less elastic demand | (B) | Monopolistic competition |
| (iii) | More elastic demand | (C) | Perfect competition |
| (iv) | Indeterminate demand | (D) | Monopoly |
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