Question

“Monopolist is a price maker”. Explain the statement.

Answer 1

A monopolist is the exclusive manufacturer or supplier of a specific product. The monopolist has complete control over the product’s supply, and because there are many customers, their individual demand is only a small portion of the total demand. Buyers must pay the monopolist’s demanded price. Monopolies increase the supply of a commodity, resulting in higher prices. A monopolist may use discriminatory pricing, selling the same product at different prices to different customers.