Question

Compared to perfect competition, a monopoly will produce ________ output, and charge a ________ price. more; lower more; higher less; higher less; lower

Answer 1

Compared to perfect competition, a monopoly will produce less output, and charge a higher price. 

A perfect competition is when a market has sellers all selling the same product and the market has no influence over the over pricing. The buyers and sellers do not control the price it is set at. A monopoly is when one company has full control and supply of a product and no one else sells it.