Question

A monopolist:____.a. produces more than the competitive outcome. b. has zero profits. c. has the same profits as what would have in a competitive market. d. produces less than the competitive outcome. e. produces the same units as the competitive outcome.

Answer 1

Answer: d. produces less than the competitive outcome.

Step-by-step explanation:

A monopolist by definition is the only one producing the certain good or service in question. This is in contrast with a competitive situation where many firms will be producing that same good.

Monopolies therefore will be unable to produce the same amount that a competitive outcome would because they would not have the capacity. This leads to a situation where monopolies can charge higher for their goods and services as opposed to competitive firms.