Ask Question
14 December, 07:23

Confronted with the same unit cost data, a monopolistic producer will charge:

A. the same price and produce the same output as a competitive firm.

B. a higher price and produce a larger output than a competitive firm.

C. a higher price and produce a smaller output than a competitive firm.

D. a lower price and produce a smaller output than a competitive firm.

+1
Answers (1)
  1. 14 December, 10:13
    0
    C. a higher price and produce a smaller output than a competitive firm.

    Explanation:

    A monopolistic producer will charge a higher price when confronted with the same unit cost data. The producer will also produce less of the item to make it appear more in demand. In turn, this allows the producer to make more money by spending less on labor and materials. Their overhead is reduced as well. This is seen as a competitive way to market their product and make it seem better and that it sells faster so keeping up with demand is difficult, even though it is completely false.
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “Confronted with the same unit cost data, a monopolistic producer will charge: A. the same price and produce the same output as a ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers