Question

9.  

It is true in monopoly pricing that the

		A.  sky is not the limit.
		B.  market cannot impose a price on a monopolist.
		C.  monopolist is a price maker.
		D.  All of the above are correct.

Answer 1

Option D.

• A monopoly is a market structure characterized by a single firm selling unique goods and services.
• This single firm is a price maker as they enjoy all the market power and set their own quantities and price levels for their goods and services.
• Thus the market cannot impose a price on a monopolist as it changes its price and output level in accordance with the demand and other factors because of Which the sky is not the limit for a monopoly firm.