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Question
Which of the following statements is true?
Options
A monopoly selects a higher price and lesser quantity of output than a price-taking company.
A monopoly selects a lower price and lesser quantity of output than a price-taking company
A monopoly selects a higher price and more quantity of output than a price-taking company.
A monopoly selects a higher price and lesser quantity of output than a price-making company.
MCQ
Solution
A monopoly selects a higher price and lesser quantity of output than a price-taking company.
Explanation:
There is only one seller in a monopoly situation, suggesting that the price structure is independent of any other enterprise in the market.
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